IFRS 10 provides guidance for when a parent organisation has effective control over an entity which should then be consolidated. Examples of this situation might include:

1. If entity management always follows the wishes of the parent

2. If the parent investor has forty percent or more of voting rights and the remaining sixty percent is shared between a number of unconnected small investors

3. The parent is the largest investor in the entity

4. If any directors are shared between the parent and the entity

a.

1 and 2

b.

2 and 3

c.

1, 2 and 3

d.

1 and 4