This is a discussion on IFRS 10 – IFRS 12 Control, Joint control, Significant influence and the accounting applied. It is added with some other logical IFRS topics: the fair value option and the other investments (no control, no joint control and no significant influence).
Consolidated subsidiaries – Consolidated structured entities
For an investor to control an investee, the investor must possess all of the following elements:
- Power over the investee, which is described as having existing rights that give the current ability to direct the activities of the investee that significantly affect the investee’s returns (such activities are referred to as the ‘relevant activities’)
- Exposure, or rights, to variable returns from