Page 12 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Theory - Control: IFRS 10.5 – .8

• “An investor controls an investee when it is exposed, or has
rights, to variable returns from its involvement with the

investee and has the ability to affect those returns through

its power over the investee.

• It is important to note that an investor (parent) may control

an investee (subsidiary) regardless of the percentage
interest held by the investor in that investee.

• An investor controls an investee when it has all three of the

following (IFRS 10.7):

• power over the investee

• exposure (or rights) to variable returns through its

relationship with the investee

• the ability to use its power over the investee to
affect the amount of returns to which it is exposed

• NOTE: Only one investor can control an investee at any

given time.

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