Please enable JavaScript.
Coggle requires JavaScript to display documents.
INTRODUCTION TO CONSOLIDATION & GROUP ACCOUNTS :silhouettes:,…
-
- MFRS(B35) : Investor holds more than half of the voting rights of an investee has power
- MFRS10(B41) : Investor with less than majority rights has rights that are sufficient to give it power when the investor has the ability to direct the relevant unilaterally activities
-
-MFRS10(B42) : consideration when assessing whether an investor's right are sufficient.
- the size of the voting right hold and the dispersion of holdings of the other vote holders
- more voting rights, more right to direct relevant activities
- more voting rights hold relative to other vote holders, more right to direct relevant activities
- more parties act together outvote, more right to direct relevant activities
- potential voting rights held by investor, other vote holders or parties
- right arising from other contractual arrangements
4.if there any additional facts or circumstances, current ability to direct relevant activities at the time need to be made
-MFRS10(B43) : the direction of relevant activities is determines by majority vote and an investor hold more voting rights than other vote holder, the other shareholdings are widely dispersed.
How to apply the control principle? : MRFS (IN9)
- Investor holds less than a majority of voting right and involving potential voting rights
- when voting rights are not dominant factor
- involving agency relationships
- when the investor has control over specified assets