Buttenhaus, a German company that reports using IFRS, owns 45% of the voting stock of Zeta. Buttenhaus should consolidate Zeta's accounts with its own in its annual report, per IFRS 10

Question

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IFRS 10 requires consolidation of financial statements when an entity has control over another entity. Control is typically evidenced by having power over the investee, which can include holding a significant portion of voting rights, among other factors. In this case, owning 45% of the voting stock could indicate that Buttenhaus has power over Zeta, necessitating consolidation if such power actually translates into control as per IFRS 10's criteria.

Buttenhaus, a German Company That Reports Using IFRS, Owns 45