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CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Power over Investee: IFRS 10.10 - .14

• Definition of power:

• “Existing rights that give the current ability to direct the

relevant activities”

• Relevant activities:

• “Activities that significantly affect the investee’s returns”

• Depend on nature of investee

• Examples (B12):

• Establishing operating and capital decisions
• Appointing, remunerating and terminating key management
personnel or service providers

• Power comes from rights

• May be simple voting rights or complex arrangements

• Examples given in B15:

• Voting rights and potential voting rights
• Rights to appoint, reassign or remove key management personnel

• Rights to enter into or veto any changes to transactions

• Other rights which give the ability to direct the relevant activities
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