According to AASB 10/IFRS 10 Consolidated Financial Statements, the existence of control is indicated by the following factors:

1. Power over the investee: An investor is considered to have power over an investee when the investor has existing rights that give it the ability to direct the relevant activities, i.e., the activities that significantly affect the investee's returns.

2. Exposure, or rights, to variable returns from involvement with the investee: An investor is exposed, or has rights, to variable returns from its involvement with the investee when the investor's returns from its involvement have the potential to vary as a result of the investee's performance.

3. The ability to use power over the investee to affect the amount of the investor's returns: An investor has the ability to use its power over the investee to affect the amount of the investor's returns when the investor can use its power over the investee to affect the amount of the investor's returns from its involvement with the investee.

These three elements must all be present for an investor to be considered as having control over an investee according to AASB 10/IFRS 10.

Question

According to AASB 10/IFRS 10 Consolidated Financial Statements, the existence of control is indicated by the following factors:

1. Power over the investee: An investor is considered to have power over an investee when the investor has existing rights that give it the ability to direct the relevant activities, i.e., the activities that significantly affect the investee's returns.

2. Exposure, or rights, to variable returns from involvement with the investee: An investor is exposed, or has rights, to variable returns from its involvement with the investee when the investor's returns from its involvement have the potential to vary as a result of the investee's performance.

3. The ability to use power over the investee to affect the amount of the investor's returns: An investor has the ability to use its power over the investee to affect the amount of the investor's returns when the investor can use its power over the investee to affect the amount of the investor's returns from its involvement with the investee.

These three elements must all be present for an investor to be considered as having control over an investee according to AASB 10/IFRS 10.

Knowee AI · Accepted Answer

According to AASB 10/IFRS 10 Consolidated Financial Statements, the existence of control is indicated by the following factors:

1. Power over the investee: An investor is considered to have power over an investee when the investor has existing rights that give it the ability to direct the relevant activities, i.e., the activities that significantly affect the investee's returns.

2. Exposure, or rights, to variable returns from involvement with the investee: An investor is exposed, or has rights, to variable returns from its involvement with the investee when the investor's returns from its involvement have the potential to vary as a result of the investee's performance.

3. The ability to use power over the investee to affect the amount of the investor's returns: An investor has the ability to use its power over the investee to affect the amount of the investor's returns when the investor can use its power over the investee to affect the amount of the investor's returns from its involvement with the investee.

These three elements must all be present for an investor to be considered as having control over an investee according to AASB 10/IFRS 10.

According to AASB 10/IFRS 10 Consolidated Financial Statements, which of the following factors indicate the existence of control?

Question

According to AASB 10/IFRS 10 Consolidated Financial Statements, which of the following factors indicate the existence of control?

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