IFRS 10 Consolidated FS

Question 1

IFRS 10 states that an investor controls an investee when the investor has all of the following:

Answer 1

1. Power over the investee
2. Exposure, or rights, to variable returns from its involvement with the investee
3. The ability to use its power over the investee to affect the amount of the investors return.

Question 2

Other evidence must be considered if still unclear

Answer 2

1. Ability to direct investee to act on investor’s behalf.
2. Key management personnel or the majority of governing body are related parties of investor
3. Special relationshops between investee and investor