Page 17 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Variable Returns: IFRS 10.15 & .16

• The investors returns have the potential to vary as a

result of the investee’s performance

• May be positive, negative or both

• Examples (B56 & B57):

• Dividends and other distributions

• Fixed interest on bonds

• Subject to default and credit risks

• Fees and exposure to loss for providing credit

• Remuneration for servicing assets

• Combining assets to achieve economies of scale

• More than one party can share in returns

• Only one investor can control the investee

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