Page 17 - Topic 1 - 1. Consolidated & Separate Financial Statement

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Link between Power and Returns: IFRS 10.17 & .18

• In order to control, must be able to use power to

affect returns

• Links previous elements of definition

• Determine whether acting as principal or agent

• Consider (B60):

• Scope of decision-making authority

• How much discretion?

• Rights held by other parties

• Removal without cause?

• Remuneration to which it is entitled

• Subject to variability?
• Exposure to variability of returns from other interests

• Other interests may indicate acting as principal
• Can only have control if principal

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