Control involves all of the following except:
A) power over the investee
B) exposure, or rights, to variable returns from the investee
C) a link between power and returns
D) the right to influence management

Question

Quizplus · Accepted Answer

Control, in the context of financial reporting and consolidation, is defined by three main criteria: having power over the investee, exposure or rights to variable returns from the involvement with the investee, and the ability to use power over the investee to affect the amount of the investor's returns. The right to influence management, while potentially indicative of some level of influence, does not alone constitute control as defined in financial standards like IFRS 10.

Control Involves All of the Following Except