Summary
IFRS 10 summary
- Course
- Financial Accounting 771
- Institution
- Stellenbosch University (SUN)
Summary of 1 pages for the course Financial Accounting 771 at SUN (IFRS 10 Summary)
[Show more]
Seller
Follow
Content preview
IFRS 10 – CONTROLDoes the parent CONTROL the subsidiary?
Control = Power + Returns + Link (Ability to use power to afffect returns)
Power = Existing Rights that give current ability to direct relevant activities.
Rights = Voting rights or other rights. (Only consider substantial rights and not
protective rights.)
Substantive rights = holder must have the practical ability to excercise the right
currently.
Voting rights
>50% (power with majority voting rights)
Power without the majority voting rights.
o Contractual agreements with other holders. - a
o Rights from Other contractual agreements. – b
o The investors voting rights. – c (de facto power) = practically speaking we
do have power.
The spread of other shareholders – can they out vote the parent?
Potential voting rights
Any additional facts that indicate that the parent has power.
o Potential voting rights. – d
Only consider if its substantive and can have an impact on the
relevant activites.
o Combination of a-d
Other rights – when the voting rights of the parent doesn’t have a significant impact on
the investee’s returns.
Consider:
Purpose and design of investee
Evidence of practical ability to direct relevant activties. B18
Special relationships. B19
Large exposure to investee’s variable returns. B20
Returns = The investor is exposed to the returns of the investee that can vary as a
result of the investees performance.
Link = 1 mark, only right a sentence
“power is present and therefore does the parent has the ability to affect the returns”
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller JanHendrikBasson. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
56326 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now