According to IFRS 10, which of the following factors indicate the existence of control? I. Possessing existing rights that give the current ability to direct the relevant activities.
II) Shared power in the governance of financial and operating policies of another entity so as to obtain benefits.
III) The power to govern the operating policies of an entity so as to obtain benefits.
IV) Ownership of more than 50% of the voting power in the subsidiary.
A) I, II and III only;
B) I and IV only;
C) II and IV only;
D) IV only.

Question

Quizplus · Accepted Answer

According to IFRS 10, control exists when an investor possesses power over the investee, has exposure, or rights, to variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor's returns. The factors indicating the existence of control include possessing existing rights that give the current ability to direct relevant activities (I) and ownership of more than 50% of the voting power in the subsidiary (IV). Shared power (II) does not indicate control under IFRS 10, as control requires the ability to direct relevant activities unilaterally.

According to IFRS 10, Which of the Following Factors Indicate