ACCA · Question 08 · Preparing Simple Consolidated Financial Statements
Section A
According to IFRS 10 Consolidated Financial Statements, 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.
Which TWO of the following are essential elements of control?
Answer options:
Ownership of more than 50% of the equity shares.
Power over the investee.
Exposure, or rights, to variable returns from its involvement with the investee.
The ability to appoint the majority of the workforce.
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