U.S.GAAP and IFRS view ownership of more than 50% of an investee as implying an ability to control the investee, unless evidence indicates to the contrary.

Question

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Both U.S. GAAP and IFRS consider ownership of more than 50% of an investee as evidence of the ability to control the investee, unless there is evidence to the contrary. This is known as the "control model" of accounting for investments.

USGAAP and IFRS View Ownership of More Than 50% of an Investee