Learning Unit 8 - Group Statements

Question 1

List the elements of control in respect to a parent and subsidiary relationship (IFRS 10.7).

Answer 1

a) power over the investee;
b) exposure, or rights to, variable returns from involvement with the investee; and
c) the ability to use power over the investee to affect the amount of the investor’s returns

Question 2

Define power over the investee in the context of IFRS 10

Answer 2

Power is defined as existing rights that give the current ability to direct the relevant activities of the investee.