Identify a controlling party

Identify a controlling party – Like the analysis for non-structured entities, an investor ‘controls’ an investee if the investor is exposed to (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. Control involves power, exposure to variability of returns and a link between the two. [IFRS 10 6 – 7, IFRS 10 Definitions, IFRS 10 B2]

As for non-structured entities, a structured entity is not expected to have more than one controlling party at any given time. If no single investor, or group of investors acting collectively, has control, then no controlling party is identified and the entity is … Read more