Which of the following is closest to IFRS 3 Business Combinations definition of control?
A) A company is deemed to have control over another only when it owns a majority of the voting shares of another company.
B) A company is deemed to have control when it can elect a majority of the Board members of another company.
C) Control is the power of one company to govern the financial and operating policies of an entity so as to obtain the benefits of its activities.
D)Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.

Question

Quizplus · Accepted Answer

This is the exact definition of control given by IFRS 3 Business Combinations. Options A and B give partial definitions of control, while option D adds an additional condition that may not necessarily be true for control to exist.

Which of the Following Is Closest to IFRS 3 Business