Sanofi reports using IFRS and invests in some of the voting shares of Pasteur. What is the deciding factor on whether it uses the equity method for this investment, or treats it as an AFS security?

Question

Quizplus · Accepted Answer

The deciding factor for using the equity method under IFRS is whether Sanofi has significant influence over Pasteur, which is typically indicated by owning 20% or more of the voting shares, but other factors can also demonstrate significant influence.

Sanofi Reports Using IFRS and Invests in Some of the Voting