Page 11 - 2018 Finac2 Test 3 Slides - Change In Degree Of Control

CHANGES IN DEGREE OF CONTROL

Overview

• Changes in ownership interests in investments

could occur as a result of one of the following:

• Acquisition of an interest in an investee

• Disposal of an interest in an investee

• Share buy-back which results in a decrease in the net

asset value of the investee

• Additional shares issued by the investee in one of two

ways (results in an increase in the net asset value of the

investee):

• A fresh issue of shares at fair value or

• A rights issue

11