M Ltd is a 30 percent shareholder of Investment Co. Pty Ltd. The other shareholders have smaller shareholdings (around 8 to 12 percent) and are always too busy to attend annual general meetings. M Ltd has two non-executive seats on the board and the remaining three are held by other shareholders one chief executive officer who is a shareholder and two non-executives who attempt to attend board meetings.

 

Determine whether or not control exists and, if so, by which party (under IFRS 10). Discuss the reasons for your answers.

Answer rating: 100% (QA)

Under IFRS 10 control exists when an investor has power over an investee exposure or rights to varia... View the full answer