Potential voting rights that cannot be exercised or converted until a future date or until the occurrence of a future event are not taken into account when determining an entity's capacity to control another entity.

Question

Quizplus · Accepted Answer

This is true according to the Accounting Standards Codification Topic 810-10-25-34. Contingent voting rights are not considered when assessing an entity's control over another entity.

Potential Voting Rights That Cannot Be Exercised or Converted Until