BUS 320 Lecture Notes - Lecture 9: Consolidated Financial Statement, Financial Statement, Mutual Fund

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 320
• Professor: Dennis Chung

Document Summary

Ias 28 investments in associates and joint ventures under equity method. Significant influence: power participating financial and operating policies (decision making process) not control/joint control => nership directly/indirectly 20-50% voting rights unless clearly demonstrates. Evidence: (a) representation on the board of directors/equivalent governing body (b) participation in policy-making (dividends/other distributions) (c) material transactions (d) interchange of managerial personnel (e) or provision of essential technical information. Clearly demonstrate: potential extra voting rights (entities/other entities) currently exercisable sufficiently strong to increase/reduce voting power (significant influence) Not subsidiary: control => rights to power variable returns from investments and affecting those returns amount (even <50% voting rights) => parent + subsidiaries = group = consolidated financial statement. Not venture capital org, mutual fund, unit trust + no election allowed under ias 28 account as fv-ni (ifrs 9) Not asset held for sale (sold within 12 months - discontinued operations ifrs 5)