The link between power over an investee and returns is not a consideration when determining control.

Question

Quizplus · Accepted Answer

The link between power over an investee and the rights to variable returns from involvement with the investee is a fundamental consideration when determining control, as per the International Financial Reporting Standards (IFRS) framework. Control is defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The Link Between Power Over an Investee and Returns Is