Under IFRS,SPEs are consolidated when evidence indicates that the reporting company "controls" the SPE.Control is presumed if which of the following conditions exist?
I.The reporting entity performs activities on behalf of the SPE.
II.The SPE has decision-making powers over the activities of the reporting entity.
III.The reporting company has the right to obtain the majority of the benefits of the SPE activities.
IV.The reporting company retains the majority of the residual or ownership risks related to the SPE or its assets.

Question

Quizplus · Accepted Answer

Control is presumed under IFRS for SPEs if the reporting company has the right to obtain the majority of the benefits of the SPE activities (III) and retains the majority of the residual or ownership risks related to the SPE or its assets (IV).

Under IFRS,SPEs Are Consolidated When Evidence Indicates That the Reporting