Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

My account — Professional

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

IFRS 10Consolidated Financial Statements

IFRS 10Chapter 5Lesson 1

Principal or agent: deciding for one's own account or for others

Step 1 of 6Learning objectives

Go deeper+3 deeper insights · +1 point of attention

A decision maker first determines whether it acts as principal or agent; an agent, acting on behalf and for the benefit of others, does not control the investee when exercising delegated decision rights.

55 minNot started

Learning objectives

  • Distinguish the principal from the agent when a decision maker exercises delegated decision rights.
  • Justify that an agent does not control the investee it manages on behalf of others.
  • Analyse the factors together: scope of authority, others' rights, remuneration, exposure.
  • Place the judgment of fund managers and the 2026 question on single-investor funds.

In this lesson

Original teaching content: it paraphrases the standard without reproducing it and does not replace the official text.

Contents — IFRS 10 — Consolidated Financial Statements

  1. 1 · Not startedRequirement to consolidate and exemption0 / 1 lesson
  2. 2 · Not startedControl: principle and reassessment0 / 1 lesson
  3. 3 · Not startedPower over the investee0 / 3 lessons
  4. 4 · Not startedVariable returns and the link0 / 1 lesson
  5. 5 · Not startedPrincipal or agent0 / 1 lesson
  6. 6 · Not startedConsolidation procedures0 / 2 lessons
  7. 7 · Not startedNon-controlling interests0 / 1 lesson
  8. 8 · Not startedChanges in ownership without loss of control0 / 1 lesson
  9. 9 · Not startedLoss of control0 / 2 lessons
  10. 10 · Not startedInvestment entities0 / 1 lesson
  11. 11 · Not startedLinks with other standards0 / 0 lessons