Page 4 - PowerPoint Presentation

CHANGES IN DEGREE OF CONTROL

Introduction

• An investor may increase or decrease its existing

interest in the net assets of an investee by means

of various corporate actions.

• This change in interest should be reflected in the

financial statements as it results in a change in

interest that the investor has in the net asset value

of the investee.

• The objective of this learning unit is to illustrate the

circumstances under which the investor’s interest

in an investee changes and how such changes are

accounted for in the separate and consolidated

financial statements of the investor.

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