{"entries":[{"key":"LX.IFRS10.000001","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.CONSOLIDATION_REQUIREMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GROUP_AS_SINGLE_ENTITY","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000001","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"understand"},"references":["IFRS 10 §2"],"exercise":{"prompt":{"fr":"","en":"Consolidated statements add up the individual accounts of the parent and its subsidiaries without eliminating the group's internal items.","es":""},"explanation":{"fr":"","en":"Rule to remember: the group is presented as a single economic entity, which means eliminating the internal items (IFRS 10).","es":""},"common_error":{"fr":"","en":"Believing that consolidated statements simply add up the individual accounts without adjustment.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000002","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.CONSOLIDATION_REQUIREMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"WHO_IS_CONSOLIDATED","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000001","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"example"},"references":["IFRS 10 §2"],"exercise":{"prompt":{"fr":"","en":"Falmer SA holds 80% of the voting rights of Gordane SA and 30% of those of Harvel SA. Teaching assumption: Falmer's rights over Gordane give it power and expose it to variable returns; it has no power over Harvel. Which entities appear in Falmer's consolidated statements?","es":""},"explanation":{"fr":"","en":"Rule to remember: consolidated statements bring together the parent and the entities it controls (IFRS 10).","es":""},"common_error":{"fr":"","en":"Reasoning from holding voting rights alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Falmer and Gordane, because Falmer controls Gordane, so it enters the consolidation","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Falmer, Gordane and Harvel, because Falmer holds voting rights in each","es":""},"correct":false,"feedback":{"fr":"","en":"Holding voting rights is not enough: without control of Harvel, it is not consolidated (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Falmer's accounts without Gordane's, because Gordane remains a legally separate company","es":""},"correct":false,"feedback":{"fr":"","en":"A separate legal personality does not prevent consolidation: control decides (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"Gordane and Harvel, the two entities in which Falmer holds voting rights","es":""},"correct":false,"feedback":{"fr":"","en":"The parent itself appears in its consolidated statements, and Harvel is not controlled (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000003","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.PARENT_EXEMPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"INDUSTRY","tested_point":"EXEMPTION_ALL_MET","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000001","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"rule-exemption"},"references":["IFRS 10 §4"],"exercise":{"prompt":{"fr":"","en":"Ilmar SA, an intermediate parent, is 100% owned by Jorvan SA. Ilmar's instruments are not traded, it has filed nothing with a regulator, and Jorvan publishes IFRS-compliant consolidated statements available to the public. Must Ilmar present consolidated statements?","es":""},"explanation":{"fr":"","en":"Rule to remember: the exemption applies when the four conditions are met (IFRS 10, para. 4).","es":""},"common_error":{"fr":"","en":"Concluding from a single condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: a parent must consolidate the subsidiaries it controls, even when its own parent publishes consolidated statements","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption provides for exactly this case when its four conditions are met (IFRS 10, para. 4).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: 100% ownership by the higher parent is not among the conditions of the exemption","es":""},"correct":false,"feedback":{"fr":"","en":"The ownership condition is indeed among the conditions of the exemption (IFRS 10, para. 4).","es":""}},{"id":"C","text":{"fr":"","en":"No: a wholly owned subsidiary is relieved without examining the other conditions","es":""},"correct":false,"feedback":{"fr":"","en":"Full ownership is not enough; the other conditions must also be met (IFRS 10, para. 4).","es":""}},{"id":"D","text":{"fr":"","en":"No: it meets the four conditions of the exemption, including the higher parent's","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000004","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.PARENT_EXEMPTION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"EXEMPTION_CONDITIONS_SORT","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IFRS10.000001","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"rule-exemption"},"references":["IFRS 10 §4"],"exercise":{"prompt":{"fr":"","en":"Sort each item: condition of the consolidation exemption, or item unrelated to it.","es":""},"explanation":{"fr":"","en":"Rule to remember: the exemption rests on ownership, market, filing and the higher parent; neither profitability nor the number of subsidiaries features in it (IFRS 10, para. 4).","es":""},"common_error":{"fr":"","en":"Adding size or profitability criteria that do not exist.","es":""},"format":"CLASSIFICATION","categories":[{"id":"cond","text":{"fr":"","en":"Condition of the exemption","es":""}},{"id":"none","text":{"fr":"","en":"Unrelated to the exemption","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The parent's instruments are not traded in a public market","es":""},"category":"cond"},{"id":"i2","text":{"fr":"","en":"The ultimate parent publishes IFRS-compliant consolidated statements available to the public","es":""},"category":"cond"},{"id":"i3","text":{"fr":"","en":"The parent made a profit in each of the last three years","es":""},"category":"none"},{"id":"i4","text":{"fr":"","en":"The parent has not filed its financial statements with a regulator for a public issue","es":""},"category":"cond"},{"id":"i5","text":{"fr":"","en":"The parent holds more than ten subsidiaries","es":""},"category":"none"},{"id":"i6","text":{"fr":"","en":"The parent's minority owners have been informed and do not object to the exemption","es":""},"category":"cond"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000005","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.PARENT_EXEMPTION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"EXEMPTION_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000001","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"pitfalls"},"references":["IFRS 10 §4"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the consolidation exemption of an intermediate parent.","es":""},"explanation":{"fr":"","en":"Rule to remember: debt or equity traded in a public market defeats the exemption (IFRS 10, para. 4).","es":""},"common_error":{"fr":"","en":"Believing that the ultimate parent's publication makes up for a public market.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The conditions of the exemption must be met together.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"A parent whose debt instruments are traded in a public market may rely on the exemption if its ultimate parent publishes IFRS consolidated statements.","es":""},"erroneous":true,"correction":{"fr":"","en":"The market condition requires that debt or equity instruments are not traded in a public market (IFRS 10, para. 4).","es":""}},{"id":"s3","text":{"fr":"","en":"The exempt parent still controls its subsidiaries.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The subsidiaries of an exempt parent remain consolidated at the level of the higher parent that publishes consolidated statements.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000006","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.PARENT_EXEMPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"EXEMPTION_SINGLE_CONDITION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000001","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"rule-exemption"},"references":["IFRS 10 §4"],"exercise":{"prompt":{"fr":"","en":"A parent that meets at least one of the conditions of the exemption is relieved from presenting consolidated statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: the conditions are cumulative (IFRS 10, para. 4).","es":""},"common_error":{"fr":"","en":"Reading the list of conditions as alternatives.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS10.000007","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.PARENT_EXEMPTION","IFRS10.SCOPE.CONSOLIDATION_REQUIREMENT"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"ENERGY","tested_point":"EXEMPTION_BLOCKERS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000001","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"example-exemption"},"references":["IFRS 10 §4"],"exercise":{"prompt":{"fr":"","en":"Kelmar SA is an intermediate parent whose ultimate parent publishes IFRS consolidated statements. Which facts prevent Kelmar from relying on the exemption? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: a public market or a filing for a public issue defeats the exemption (IFRS 10, para. 4).","es":""},"common_error":{"fr":"","en":"Mistaking full ownership, which supports the exemption, for an obstacle.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its shares are admitted to trading on a public market","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is in the process of filing its financial statements with a regulator to issue securities to the public","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is 100% owned by its ultimate parent","es":""},"correct":false,"feedback":{"fr":"","en":"Full ownership is one of the situations covered by the ownership condition, not an obstacle (IFRS 10, para. 4).","es":""}},{"id":"D","text":{"fr":"","en":"It controls two subsidiaries carrying on different activities","es":""},"correct":false,"feedback":{"fr":"","en":"The number or nature of the subsidiaries' activities is not among the conditions (IFRS 10, para. 4).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000008","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"THREE_ELEMENTS_NAMES","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"understand"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"What are the three elements that define control of an investee?","es":""},"explanation":{"fr":"","en":"Rule to remember: power, variable returns and the link (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Mistaking the three elements of control for the usual signs of ownership.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The majority of capital, the payment of dividends and a seat on the board","es":""},"correct":false,"feedback":{"fr":"","en":"These are possible indications, not the three elements of the definition (IFRS 10, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"Power, guaranteed fixed returns and legal ownership of the entity's assets","es":""},"correct":false,"feedback":{"fr":"","en":"Returns must be able to vary with the entity's performance (IFRS 10, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"Power, exposure to variable returns and the link between the two elements","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Significant influence, variable returns and joint control of decisions","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence and joint control come under other standards, not the definition of control (IFRS 10, para. 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000009","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"FACT_TO_ELEMENT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"Match each fact about Pelvan SA to the element of control it illustrates.","es":""},"explanation":{"fr":"","en":"Rule to remember: power concerns decisions, returns concern what the investor receives or bears, the link concerns the influence of the first on the second (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Classing a return as power because it comes from the same entity.","es":""},"format":"CLASSIFICATION","categories":[{"id":"pow","text":{"fr":"","en":"Power","es":""}},{"id":"ret","text":{"fr":"","en":"Variable returns","es":""}},{"id":"lnk","text":{"fr":"","en":"Link between power and returns","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Pelvan can appoint and remove the management that steers the main activity of Quenel SA","es":""},"category":"pow"},{"id":"i2","text":{"fr":"","en":"Pelvan receives dividends that depend on Quenel's profit","es":""},"category":"ret"},{"id":"i3","text":{"fr":"","en":"Pelvan makes pricing decisions that increase its own dividends","es":""},"category":"lnk"},{"id":"i4","text":{"fr":"","en":"Pelvan alone decides Quenel's major investments","es":""},"category":"pow"},{"id":"i5","text":{"fr":"","en":"Pelvan bears a share of Quenel's losses in a bad year","es":""},"category":"ret"},{"id":"i6","text":{"fr":"","en":"Pelvan's decisions on the sales timetable change the amount of its royalties","es":""},"category":"lnk"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000010","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ALL_THREE_REQUIRED","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"To conclude that there is control, the three elements (power, variable returns and the link) must be present together.","es":""},"explanation":{"fr":"","en":"Rule to remember: the three elements must be present together (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Retaining a single criterion, the most visible one.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000011","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"MAJORITY_NOT_ENOUGH","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"pitfalls"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"An investor that holds the majority of voting rights does not have to examine its variable returns to conclude that it has control.","es":""},"explanation":{"fr":"","en":"Rule to remember: even with a majority of votes, the three elements are to be examined (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Equating control with a majority of voting rights.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000012","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FOOD","tested_point":"MINICASE_BOARD_RIGHT","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"example"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"Conclude on Sandrel SA's control of Tavion SA.","es":""},"explanation":{"fr":"","en":"Rule to remember: control rests on power, variable returns and the link, not on a percentage (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Reducing control to holding a percentage of capital.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Sandrel SA holds 40% of the capital of Tavion SA, a cannery. A shareholders' agreement gives it the right to appoint the majority of the board, which decides on the budget, investments and management of Tavion. Teaching assumption: this right is substantive and currently exercisable; the other shareholders are numerous and have no comparable right. Sandrel receives 40% of Tavion's dividends and bears 40% of its losses; its investment choices affect these amounts.","es":""},"parts":[{"prompt":{"fr":"","en":"Which fact establishes Sandrel's power over Tavion?","es":""},"explanation":{"fr":"","en":"Rule to remember: power comes from existing rights that give the current ability to direct the relevant activities (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Looking for power in the amount of dividends.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 40% of dividends received, which reflect its weight in the entity","es":""},"correct":false,"feedback":{"fr":"","en":"Dividends are returns, not power (IFRS 10, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"The right to appoint the board majority, which directs decisions","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The large number of minority shareholders, which leaves a decision vacuum","es":""},"correct":false,"feedback":{"fr":"","en":"The dispersion of the others is context; power comes from Sandrel's rights (IFRS 10, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"The budget voted each year, whose execution Sandrel follows","es":""},"correct":false,"feedback":{"fr":"","en":"Following a budget is not holding the right to decide it (IFRS 10, para. 7).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Sandrel is exposed to variable returns from Tavion.","es":""},"explanation":{"fr":"","en":"Its dividends and its share of losses vary with Tavion's performance (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Forgetting that losses are also variable returns.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"What conclusion follows, with only 40% of capital?","es":""},"explanation":{"fr":"","en":"Rule to remember: control results from the three elements together, not from a percentage (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Requiring a majority of capital.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Sandrel does not control Tavion, because it does not hold half of the capital","es":""},"correct":false,"feedback":{"fr":"","en":"No percentage of capital is required; the conclusion comes from the three elements (IFRS 10, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"Sandrel controls Tavion and consolidates it, the three elements being present","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Sandrel has significant influence over Tavion and equity-accounts it","es":""},"correct":false,"feedback":{"fr":"","en":"The three elements of control are present: equity accounting does not apply (IFRS 10, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"Sandrel and the other shareholders have joint control of Tavion","es":""},"correct":false,"feedback":{"fr":"","en":"No decision requires the unanimous agreement of the parties: Sandrel directs the decisions on its own (IFRS 10, para. 7).","es":""}}],"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000013","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.REASSESSMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"REASSESSMENT_TRIGGER","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-reassess"},"references":["IFRS 10 §8","IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Which event requires Rovane SA to reassess its control of Tavel SA?","es":""},"explanation":{"fr":"","en":"Rule to remember: a change in one of the three elements requires control to be reassessed (IFRS 10, para. 8).","es":""},"common_error":{"fr":"","en":"Reassessing on a fixed date rather than at each change in facts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expiry of an option allowing it to appoint the majority of Tavel's board","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The publication of Tavel's annual accounts, which appear on a set date","es":""},"correct":false,"feedback":{"fr":"","en":"A publication date is not a change in facts about the elements of control (IFRS 10, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"A drop in Tavel's profit compared with the previous year, with no other fact","es":""},"correct":false,"feedback":{"fr":"","en":"A change in profit does not by itself change power or the link (IFRS 10, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"The replacement of Rovane's finance director, who remains in post in the group","es":""},"correct":false,"feedback":{"fr":"","en":"An internal change at the investor does not affect the rights over the investee (IFRS 10, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000014","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IFRS3"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"INDUSTRY","tested_point":"IFRS3_TRIGGER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-ifrs3"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Dalmore SA obtains control of a business by buying the majority of its shares. How do IFRS 10 and IFRS 3 share their roles?","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRS 10 defines control, IFRS 3 accounts for the acquisition (IFRS 10).","es":""},"common_error":{"fr":"","en":"Attributing the measurement of goodwill to IFRS 10.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 3 defines control; IFRS 10 deals with measuring goodwill and the assets acquired","es":""},"correct":false,"feedback":{"fr":"","en":"The roles are reversed: control comes under IFRS 10 (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 10 is sufficient: it also sets the measurement of the acquired business's assets and liabilities","es":""},"correct":false,"feedback":{"fr":"","en":"Measurement at the acquisition date comes under IFRS 3, not IFRS 10 (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Neither: buying a majority of shares is treated as a financial investment","es":""},"correct":false,"feedback":{"fr":"","en":"Obtaining control of a business triggers IFRS 3 and consolidation (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 10 defines control and identifies the acquirer; IFRS 3 deals with accounting for the acquisition","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000015","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IFRS11","IFRS10.CONTROL.PRINCIPLE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"JOINT_CONTROL_UNANIMITY","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS10.000002","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-ifrs11"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"Tolmar SA holds 55% and Ulvane SA 45% of an energy entity. A contract requires the agreement of both for all decisions on the relevant activities. Which analysis is right?","es":""},"explanation":{"fr":"","en":"Rule to remember: joint control requires the unanimous consent of the parties sharing control (IFRS 10).","es":""},"common_error":{"fr":"","en":"Deducing control from the highest percentage.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tolmar controls the entity through its 55% and consolidates it under IFRS 10","es":""},"correct":false,"feedback":{"fr":"","en":"The 55% does not give the power to decide without Ulvane: both must agree (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Each party consolidates the entity in proportion to its ownership percentage","es":""},"correct":false,"feedback":{"fr":"","en":"Consolidating comes from one party's control; the contractual sharing of control follows IFRS 11 (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Joint control (IFRS 11): decisions need both parties' unanimous consent","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Ulvane holds a non-controlling interest in Tolmar's entity","es":""},"correct":false,"feedback":{"fr":"","en":"A non-controlling interest presupposes a controlled entity, which is not the case here (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000016","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"POWER_UNEXERCISED_RIGHTS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS10.000003","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"understand"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"Gorlan SA has held for a year a right to appoint the majority of the board of Hesper SA, which directs the main activity. It has never changed a director. Does it have power over Hesper?","es":""},"explanation":{"fr":"","en":"Rule to remember: the current ability to direct is enough (IFRS 10).","es":""},"common_error":{"fr":"","en":"Requiring actual exercise of the right.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: until the right has been exercised at least once, power does not exist","es":""},"correct":false,"feedback":{"fr":"","en":"Power rests on the current ability, not on actual exercise (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"No: a right of appointment is a protective right, which does not give direction","es":""},"correct":false,"feedback":{"fr":"","en":"Appointing the board that decides the relevant activities confers direction, not mere protection (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, because the right exists and gives the current ability to direct","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, but from the first actual appointment of a director onwards","es":""},"correct":false,"feedback":{"fr":"","en":"Power exists as soon as the current ability exists, before any appointment (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS10.000017","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"INDUSTRY","tested_point":"RIGHTS_THAT_CONFER_POWER","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000003","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-rights"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"Isard SA wants to assess its power over Jalmar SA. Which of these items are existing rights that can confer power? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: power comes from existing rights, voting or contractual, and not from intentions (IFRS 10).","es":""},"common_error":{"fr":"","en":"Taking an intention or a relationship for a right.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The long-standing business relationship with Jalmar's executives","es":""},"correct":false,"feedback":{"fr":"","en":"A business relationship confers no right to direct the activities (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Voting rights allowing it to designate Jalmar's executives","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A contractual right to decide Jalmar's investment programme","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The announced intention to buy shares of Jalmar next year","es":""},"correct":false,"feedback":{"fr":"","en":"An intention is not an existing right: it does not give the current ability to direct (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000018","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"POWER_FILL_RULE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS10.000003","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-rights"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"Complete the rule on power.","es":""},"explanation":{"fr":"","en":"Rule to remember: existing rights, current ability, relevant activities (IFRS 10).","es":""},"common_error":{"fr":"","en":"Replacing the current ability with past exercise.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Power results from {{b1}} that give the {{b2}} ability to direct the {{b3}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"existing rights","es":""}},{"id":"b","text":{"fr":"","en":"future hopes","es":""}},{"id":"c","text":{"fr":"","en":"business relationships","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"past","es":""}},{"id":"b","text":{"fr":"","en":"current","es":""}},{"id":"c","text":{"fr":"","en":"possible","es":""}}],"answer":"b"},{"id":"b3","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"relevant activities","es":""}},{"id":"b","text":{"fr":"","en":"accounting activities","es":""}},{"id":"c","text":{"fr":"","en":"ancillary activities","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000019","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.RELEVANT_ACTIVITIES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TECH","tested_point":"RELEVANT_ACTIVITIES_SORT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000003","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-activities"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: Kelmor SA publishes software. Sort each decision: relevant activity, or decision without a significant effect on returns.","es":""},"explanation":{"fr":"","en":"Rule to remember: relevant decisions are those that make returns vary significantly (IFRS 10).","es":""},"common_error":{"fr":"","en":"Classing all routine management decisions as relevant.","es":""},"format":"CLASSIFICATION","categories":[{"id":"rel","text":{"fr":"","en":"Relevant activity","es":""}},{"id":"non","text":{"fr":"","en":"No significant effect","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Setting the product roadmap and the development budget","es":""},"category":"rel"},{"id":"i2","text":{"fr":"","en":"Setting the pricing and licensing policy","es":""},"category":"rel"},{"id":"i3","text":{"fr":"","en":"Choosing the office-supplies provider","es":""},"category":"non"},{"id":"i4","text":{"fr":"","en":"Choosing the colour of staff access badges","es":""},"category":"non"},{"id":"i5","text":{"fr":"","en":"Deciding on the purchase of a competitor that would double the customer base","es":""},"category":"rel"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000020","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.RELEVANT_ACTIVITIES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"MINICASE_PHASED_DECISIONS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS10.000003","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-timing"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Analyse who has power over the project company Lorvane.","es":""},"explanation":{"fr":"","en":"Rule to remember: power is measured over the activities that most affect returns, which may change over time (IFRS 10).","es":""},"common_error":{"fr":"","en":"Looking for a single party that decides everything.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Lorvane SA is a project company that builds and then operates a wind farm. During construction, Merval SA decides on the site, the turbine contracts and the financing. Once the farm is in service, Norvik SA decides on electricity sales contracts and maintenance. Teaching assumption: the decisions of the construction phase are those that most affect Lorvane's returns; Merval can take them on its own.","es":""},"parts":[{"prompt":{"fr":"","en":"Which decisions are Lorvane's relevant activities?","es":""},"explanation":{"fr":"","en":"Rule to remember: look for the decisions with a significant effect, whatever the phase (IFRS 10).","es":""},"common_error":{"fr":"","en":"Retaining only one phase of the entity's life.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The maintenance decisions, because they last the longest","es":""},"correct":false,"feedback":{"fr":"","en":"Duration is not the criterion; it is the effect on returns (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Construction decisions and operating decisions, at different times","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Lorvane's routine administrative decisions, taken at the same frequency","es":""},"correct":false,"feedback":{"fr":"","en":"Routine decisions have no significant effect on returns (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"The operator's financing decisions, once the farm is in service","es":""},"correct":false,"feedback":{"fr":"","en":"The project's financing is decided during construction, not by the operator (IFRS 10).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"On the case assumptions, who directs the activities that most affect returns?","es":""},"explanation":{"fr":"","en":"Rule to remember: the analysis compares the effect of each party's decisions on returns (IFRS 10).","es":""},"common_error":{"fr":"","en":"Giving power to the most recent party.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Merval, because it takes the decisions of the construction phase","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Norvik, because it comes last and its decisions last longer","es":""},"correct":false,"feedback":{"fr":"","en":"Timing and duration do not determine the effect on returns (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Nobody, because the decisions are split between two separate parties","es":""},"correct":false,"feedback":{"fr":"","en":"A split of decisions does not prevent identifying the one with the greatest effect (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"Merval and Norvik together, equally, throughout Lorvane's life","es":""},"correct":false,"feedback":{"fr":"","en":"No case data provides for joint direction of decisions (IFRS 10).","es":""}}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"When the relevant activities change in nature over time, this may lead to a reassessment of control.","es":""},"explanation":{"fr":"","en":"A change in the facts about the elements of control requires a reassessment (IFRS 10, para. 8).","es":""},"common_error":{"fr":"","en":"Assuming that the analysis of power is frozen at the creation of the entity.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000021","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS","IFRS10.POWER.RELEVANT_ACTIVITIES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"POWER_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000003","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"pitfalls"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about power.","es":""},"explanation":{"fr":"","en":"Rule to remember: the current ability is enough, exercise is not necessary (IFRS 10).","es":""},"common_error":{"fr":"","en":"Linking power to a decision already taken.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"A right that has not yet been exercised cannot confer power.","es":""},"erroneous":true,"correction":{"fr":"","en":"Power rests on the current ability to direct, even without exercising the rights (IFRS 10).","es":""}},{"id":"s2","text":{"fr":"","en":"The relevant activities are those that have a significant effect on returns.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"Protective rights alone do not confer power.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"Power can be spread among several parties according to the relevant activities they direct.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000022","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PROTECTIVE_ONLY_NO_POWER","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000003","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-rights"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"An investor whose rights over the entity are protective rights has power over it.","es":""},"explanation":{"fr":"","en":"Rule to remember: protective rights alone do not confer power (IFRS 10).","es":""},"common_error":{"fr":"","en":"Taking a defensive veto for a right to direct.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000023","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.SUBSTANTIVE_RIGHTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"COLLECTIVE_ACTION_RIGHT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000004","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-substantive"},"references":["IFRS 10 §B22"],"exercise":{"prompt":{"fr":"","en":"Calmer SA has the right to remove the management of Dorian SA, but exercise requires the agreement of forty dispersed shareholders. Case convention: they have never coordinated and have no way of doing so. Is this right substantive?","es":""},"explanation":{"fr":"","en":"Rule to remember: a collective action problem can deprive a right of its substantive character (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Relying on the wording of the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the right is written in the contract, which makes it substantive","es":""},"correct":false,"feedback":{"fr":"","en":"The text is not enough; the practical ability to exercise is decisive (IFRS 10, para. B22).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: the dispersion of shareholders favours the holder of the right","es":""},"correct":false,"feedback":{"fr":"","en":"Here the dispersion makes agreement impossible: it prevents exercise (IFRS 10, para. B22).","es":""}},{"id":"C","text":{"fr":"","en":"No: a removal right cannot be substantive, its protective nature prevents it","es":""},"correct":false,"feedback":{"fr":"","en":"A removal right exercisable in practice can be substantive; the facts decide (IFRS 10, para. B22).","es":""}},{"id":"D","text":{"fr":"","en":"No, because a collective action problem prevents Calmer from exercising it in practice","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000024","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.SUBSTANTIVE_RIGHTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"SUBSTANTIVE_TIMING","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000004","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-substantive"},"references":["IFRS 10 §B22"],"exercise":{"prompt":{"fr":"","en":"Ravel SA can remove Esker SA's directors at the annual meeting, which is where the decisions on Esker's relevant activities are taken. Is this right substantive?","es":""},"explanation":{"fr":"","en":"Rule to remember: a right exercisable when the relevant decisions are taken can be substantive (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Requiring a right exercisable at any instant.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: a right that is not exercisable on a permanent basis cannot be substantive","es":""},"correct":false,"feedback":{"fr":"","en":"It is enough that the right is exercisable when the relevant decisions are taken (IFRS 10, para. B22).","es":""}},{"id":"B","text":{"fr":"","en":"No: a right exercisable at a meeting does not count, for lack of immediate exercise","es":""},"correct":false,"feedback":{"fr":"","en":"Exercise at a meeting that takes the relevant decisions is sufficient (IFRS 10, para. B22).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, provided Ravel also holds the majority of Esker's capital","es":""},"correct":false,"feedback":{"fr":"","en":"No majority of capital is a condition of being substantive (IFRS 10, para. B22).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, because it is exercisable at the time when the relevant decisions are taken","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000025","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.PROTECTIVE_RIGHTS","IFRS10.POWER.SUBSTANTIVE_RIGHTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"RIGHTS_SORT_PROTECTIVE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000004","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-protective"},"references":["IFRS 10","IFRS 10 §B22"],"exercise":{"prompt":{"fr":"","en":"Sort each right of an investor in an entity: right conferring power, or protective right.","es":""},"explanation":{"fr":"","en":"Rule to remember: a protective right defends an interest, a power right directs the relevant activities (IFRS 10).","es":""},"common_error":{"fr":"","en":"Taking an opposition to a fundamental change for a right to direct.","es":""},"format":"CLASSIFICATION","categories":[{"id":"pow","text":{"fr":"","en":"Right that can confer power","es":""}},{"id":"prot","text":{"fr":"","en":"Protective right","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Deciding the entity's investment programme and prices","es":""},"category":"pow"},{"id":"i2","text":{"fr":"","en":"Opposing a merger of the entity with another company","es":""},"category":"prot"},{"id":"i3","text":{"fr":"","en":"Appointing and removing the chief executive who steers the main activity","es":""},"category":"pow"},{"id":"i4","text":{"fr":"","en":"Demanding early repayment of a loan in case of a breach of covenant","es":""},"category":"prot"},{"id":"i5","text":{"fr":"","en":"Opposing an amendment to the articles that would reduce shareholders' rights","es":""},"category":"prot"},{"id":"i6","text":{"fr":"","en":"Choosing suppliers and setting the budgets of the entity's main activities","es":""},"category":"pow"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000026","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.PROTECTIVE_RIGHTS","IFRS10.CONTROL.REASSESSMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"COVENANT_BREACH_REASSESS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000004","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"example-protective"},"references":["IFRS 10","IFRS 10 §8"],"exercise":{"prompt":{"fr":"","en":"Fenor Bank, lender to Gastel SA, holds protective rights that become exercisable following a breach by Gastel of a covenant. What must Fenor do?","es":""},"explanation":{"fr":"","en":"Rule to remember: protective rights becoming exercisable is a change in facts that requires a reassessment (IFRS 10).","es":""},"common_error":{"fr":"","en":"Concluding automatically that control exists or does not.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Consolidate Gastel from the breach: the rights are exercisable","es":""},"correct":false,"feedback":{"fr":"","en":"An exercisable right triggers a reassessment, not an automatic consolidation (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Do nothing, protective rights not counting for control","es":""},"correct":false,"feedback":{"fr":"","en":"The change in facts requires a reassessment, even for protective rights (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Reassess whether it controls Gastel; the conclusion may stay the same","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Wait for the next annual closing before asking the question of control","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment is continuous: it is made when the facts change (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000027","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.SUBSTANTIVE_RIGHTS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"OBSTACLES_MULTI","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000004","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-substantive"},"references":["IFRS 10 §B22"],"exercise":{"prompt":{"fr":"","en":"Which facts can prevent a right from being substantive? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: barriers, collective action and absence of benefit prevent exercise in practice (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Confusing a right not yet used with a right that cannot be exercised.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Exercise that would bring no benefit to its holder","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fact that the right has not yet been used by its holder","es":""},"correct":false,"feedback":{"fr":"","en":"A right not yet used can be substantive if its holder can exercise it (IFRS 10, para. B22).","es":""}},{"id":"C","text":{"fr":"","en":"A barrier that prevents the holder from exercising its right in practice","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Exercise that requires the agreement of many dispersed parties","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000028","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.SUBSTANTIVE_RIGHTS","IFRS10.POWER.PROTECTIVE_RIGHTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FOOD","tested_point":"MINICASE_THREE_RIGHTS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS10.000004","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"example-substantive"},"references":["IFRS 10 §B22","IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Characterise Halvik SA's rights over Irsen SA.","es":""},"explanation":{"fr":"","en":"Rule to remember: each right is examined: purpose, exercisability, effect on the relevant decisions (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Treating all of a shareholder's rights in the same way.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Halvik SA holds three rights in Irsen SA, a dairy. Right 1: appointing the majority of the board, which decides ranges, prices and investments; this right is exercisable at any time. Right 2: opposing any sale of all of Irsen's assets. Right 3: buying, in two years, shares of Irsen at a price fixed today. Case convention: at the analysis date, no relevant decision depends on right 3.","es":""},"parts":[{"prompt":{"fr":"","en":"Which of Halvik's rights is a protective right?","es":""},"explanation":{"fr":"","en":"Rule to remember: a protective right defends an interest without directing the relevant activities (IFRS 10).","es":""},"common_error":{"fr":"","en":"Classing by the place of the right in the agreement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Right 1, because it concerns the composition of a body of the entity","es":""},"correct":false,"feedback":{"fr":"","en":"Right 1 directs the relevant decisions: it can confer power (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Right 2, because it defends Halvik's interest against a fundamental change","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Right 3, because it takes effect in two years","es":""},"correct":false,"feedback":{"fr":"","en":"Right 3 is a purchase right, not a defensive right; whether it is substantive is another question (IFRS 10, para. B22).","es":""}},{"id":"D","text":{"fr":"","en":"The three rights together, because a shareholder holds its rights to protect its investment","es":""},"correct":false,"feedback":{"fr":"","en":"A right is protective when it defends an interest without directing the activity; right 2 is one (IFRS 10).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Right 1 is a substantive right that can confer power on Halvik.","es":""},"explanation":{"fr":"","en":"It is exercisable at any time and concerns the relevant decisions (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Hesitating to recognise power for lack of a majority of capital.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"How should right 3 be treated in the analysis of power at the date used?","es":""},"explanation":{"fr":"","en":"Rule to remember: a right adds to power only if it is exercisable when the relevant decisions are taken (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Counting future rights as current rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It adds nothing to power, because no relevant decision depends on it","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It gives additional power today: it is already signed","es":""},"correct":false,"feedback":{"fr":"","en":"A right exercisable only in two years is not exercisable when decisions are taken (IFRS 10, para. B22).","es":""}},{"id":"C","text":{"fr":"","en":"It makes right 1 non-substantive, because two rights cannot coexist","es":""},"correct":false,"feedback":{"fr":"","en":"An investor can hold several rights; each is examined (IFRS 10, para. B22).","es":""}},{"id":"D","text":{"fr":"","en":"It must be treated as a protective right for Irsen's debt","es":""},"correct":false,"feedback":{"fr":"","en":"It is a share purchase right, unrelated to protecting a debt (IFRS 10).","es":""}}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000029","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.PROTECTIVE_RIGHTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"VETO_IS_POWER_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS10.000004","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"pitfalls"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"A right of veto over a merger gives the power to direct the entity's relevant activities.","es":""},"explanation":{"fr":"","en":"Rule to remember: opposing a fundamental change protects an interest without directing the activity (IFRS 10).","es":""},"common_error":{"fr":"","en":"Equating an occasional blocking power with a power of direction.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000030","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.DE_FACTO"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DEFACTO_NO_THRESHOLD","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-defacto"},"references":["IFRS 10 §B41"],"exercise":{"prompt":{"fr":"","en":"The standard sets a percentage of voting rights from which de facto control is established.","es":""},"explanation":{"fr":"","en":"Rule to remember: the standard sets no percentage threshold; de facto control is a judgment (IFRS 10, para. B41).","es":""},"common_error":{"fr":"","en":"Treating a threshold heard in practice as if it were in the standard.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000031","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.DE_FACTO"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"DEFACTO_FACTORS_FAVOUR","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-defacto"},"references":["IFRS 10 §B41"],"exercise":{"prompt":{"fr":"","en":"Dorsel SA holds less than half of the votes of Elvane SA. Which combination of facts best supports its practical ability to direct without a majority?","es":""},"explanation":{"fr":"","en":"Rule to remember: relative size, dispersion and past voting underpin the de facto control judgment (IFRS 10, para. B41).","es":""},"common_error":{"fr":"","en":"Reasoning on the percentage held.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A holding significantly larger than that of each of the others, dispersed holders and low attendance at past meetings","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A holding close to that of another shareholder, with which a joint voting agreement has been concluded and is applied at each meeting","es":""},"correct":false,"feedback":{"fr":"","en":"Another holder of comparable weight weakens the ability to direct unilaterally (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"A holding slightly below that of the largest holder, who votes at each meeting with most of its rights","es":""},"correct":false,"feedback":{"fr":"","en":"Being behind another active holder does not give the ability to direct unilaterally (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"A holding of 40%, this percentage being the threshold set by the standard for de facto control","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no percentage threshold (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000032","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.POTENTIAL_VOTING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"OPTION_SUBSTANTIVE_NOW","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-potential"},"references":["IFRS 10 §B24"],"exercise":{"prompt":{"fr":"","en":"Fargal SA holds 30% of the votes of Hilmar SA and a call option for 25% of the votes, exercisable immediately at €20 per share when the share is worth €45. How should the option be treated in the power analysis?","es":""},"explanation":{"fr":"","en":"Rule to remember: an exercisable and beneficial potential right is substantive (IFRS 10).","es":""},"common_error":{"fr":"","en":"Setting potential rights aside as a matter of principle.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is set aside, because a potential right counts once exercised","es":""},"correct":false,"feedback":{"fr":"","en":"A substantive potential right counts before its exercise (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"It is set aside, because a price below fair value makes it non-substantive","es":""},"correct":false,"feedback":{"fr":"","en":"A price below fair value makes exercise beneficial, hence substantive (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"It is taken into account for the amount of the premium paid at issue, irrespective of its exercise date","es":""},"correct":false,"feedback":{"fr":"","en":"What counts is the practical ability to exercise at the right time, not the premium (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"It is taken into account, because it is exercisable now and exercising it is beneficial","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000033","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.POTENTIAL_VOTING"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"POTENTIAL_SORT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-potential"},"references":["IFRS 10 §B24"],"exercise":{"prompt":{"fr":"","en":"For each potential right of Ivorne SA over Jarvel SA, say whether it is substantive at the analysis date.","es":""},"explanation":{"fr":"","en":"Rule to remember: a potential right counts if it is exercisable when decisions are taken and beneficial to exercise (IFRS 10).","es":""},"common_error":{"fr":"","en":"Judging by the nature of the instrument rather than its exercise conditions.","es":""},"format":"CLASSIFICATION","categories":[{"id":"sub","text":{"fr":"","en":"Substantive at the analysis date","es":""}},{"id":"non","text":{"fr":"","en":"Not substantive at the analysis date","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Warrant exercisable now, exercise price below the share's fair value","es":""},"category":"sub"},{"id":"i2","text":{"fr":"","en":"Call option exercisable in three years, while decisions are taken each quarter","es":""},"category":"non"},{"id":"i3","text":{"fr":"","en":"Convertible bond whose conversion is possible at each meeting, at a price below fair value","es":""},"category":"sub"},{"id":"i4","text":{"fr":"","en":"Call option exercisable now, but at twice the share's fair value, with no other benefit for the holder (case assumption)","es":""},"category":"non"},{"id":"i5","text":{"fr":"","en":"Call option exercisable now at the market price, with no barrier or condition","es":""},"category":"sub"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000034","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.STRUCTURED_ENTITIES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"STRUCTURED_POWER_SOURCE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-structured"},"references":["IFRS 10 §B8"],"exercise":{"prompt":{"fr":"","en":"Where does power over a structured entity generally come from?","es":""},"explanation":{"fr":"","en":"Rule to remember: power over a structured entity generally results from contractual arrangements (IFRS 10).","es":""},"common_error":{"fr":"","en":"Looking for power in the votes, as for a trading company.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"From the number of voting rights held, as in an ordinary trading company","es":""},"correct":false,"feedback":{"fr":"","en":"In a structured entity, voting rights are not the dominant factor (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"From the amount of capital contributed by the investor when the entity was created","es":""},"correct":false,"feedback":{"fr":"","en":"The amount contributed is a possible return, not the source of power (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"From contracts that direct the relevant activities, more than from votes","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"From the presence of an investor representative on the administrative body","es":""},"correct":false,"feedback":{"fr":"","en":"Presence on an administrative body says nothing about the relevant activities directed by contract (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000035","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.STRUCTURED_ENTITIES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"MINICASE_SECURITISATION","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-structured"},"references":["IFRS 10 §B8"],"exercise":{"prompt":{"fr":"","en":"Analyse Korlan Bank's power over the vehicle Mirage.","es":""},"explanation":{"fr":"","en":"Rule to remember: in a structured entity, the analysis starts from contracts, purpose and design (IFRS 10).","es":""},"common_error":{"fr":"","en":"Asking for voting rights where they are not the dominant factor.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Mirage is a securitisation vehicle created by Korlan Bank. The unit holders have voting rights limited to the approval of the accounts. A management contract, concluded at creation, sets which receivables are acquired and how they are collected; Korlan, which designed the vehicle, provides this management. Teaching assumption: these management decisions are Mirage's relevant activities.","es":""},"parts":[{"prompt":{"fr":"","en":"Mirage has the characteristics of a structured entity.","es":""},"explanation":{"fr":"","en":"Its voting rights relate only to administration and its relevant activities are directed by contract (IFRS 10).","es":""},"common_error":{"fr":"","en":"Not recognising a structured entity for lack of dominant votes.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Which items must Korlan examine to assess its power? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: purpose, design, risks passed on and involvement guide the analysis (IFRS 10).","es":""},"common_error":{"fr":"","en":"Analysing the vehicle as a company with dominant voting rights.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The risks the vehicle was designed to create and pass on","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Its involvement in the design of the vehicle","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The number of general meetings held since creation","es":""},"correct":false,"feedback":{"fr":"","en":"Meetings only approve the accounts: they do not shed light on power over the relevant activities (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"The purpose and design of the vehicle","es":""},"correct":true}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The management contract that Korlan performs can be the source of its power over Mirage.","es":""},"explanation":{"fr":"","en":"In a structured entity, power generally results from contractual arrangements (IFRS 10); the other elements of control remain to be examined.","es":""},"common_error":{"fr":"","en":"Concluding on control without examining returns and the link.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000036","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.DE_FACTO"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"MEDIA","tested_point":"DEFACTO_FACTORS_MULTI","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"example-defacto"},"references":["IFRS 10 §B41"],"exercise":{"prompt":{"fr":"","en":"Which items does the investor consider to assess its practical ability to direct without a majority? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: size, dispersion and past voting underpin the judgment, with no threshold (IFRS 10, para. B41).","es":""},"common_error":{"fr":"","en":"Looking for a minimum percentage in the standard.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The size of its holding relative to that of the other holders","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The dispersion of the other holders","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The voting patterns observed at past meetings","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A fixed percentage of 50% minus one vote, set by the standard as a minimum","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides no minimum percentage for de facto control (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000037","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.POTENTIAL_VOTING","IFRS10.POWER.DE_FACTO"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"POTENTIAL_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000005","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-potential"},"references":["IFRS 10 §B41"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about potential voting rights and de facto control.","es":""},"explanation":{"fr":"","en":"Rule to remember: exercise must be beneficial and possible for a potential right to be substantive (IFRS 10).","es":""},"common_error":{"fr":"","en":"Counting an option because it exists, without looking at its conditions.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"A potential voting right is taken into account only if it is substantive.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"Potential rights held by other parties are analysed together with the other rights.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"An option whose exercise would bring no benefit to its holder remains substantive.","es":""},"erroneous":true,"correction":{"fr":"","en":"The absence of benefit from exercise can make the right non-substantive (IFRS 10).","es":""}},{"id":"s4","text":{"fr":"","en":"De facto control calls for a judgment on practical ability, not a percentage.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000038","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.VARIABLE_RETURNS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RETURNS_POSITIVE_NEGATIVE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000006","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"understand"},"references":["IFRS 10 §15"],"exercise":{"prompt":{"fr":"","en":"An investor's variable returns can be positive, negative or both depending on the period.","es":""},"explanation":{"fr":"","en":"Rule to remember: variable returns can be positive, negative or both (IFRS 10).","es":""},"common_error":{"fr":"","en":"Thinking a variable return is a gain.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000039","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.VARIABLE_RETURNS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"VARIABLE_RETURN_IDENTIFY","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS10.000006","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-returns"},"references":["IFRS 10 §15"],"exercise":{"prompt":{"fr":"","en":"Maran SA holds shares of Nelor SA and has guaranteed Nelor's bank loan. Which item is a variable return for Maran?","es":""},"explanation":{"fr":"","en":"Rule to remember: a guarantee exposes to losses that vary with the entity's performance (IFRS 10).","es":""},"common_error":{"fr":"","en":"Confusing the fixed terms of the loan with the risk of loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nominal amount of Nelor's loan, which is set in the loan agreement","es":""},"correct":false,"feedback":{"fr":"","en":"The nominal amount is set; what varies is the possible loss tied to performance (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"The loss Maran would bear under its guarantee if Nelor did not repay the loan","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The maturity date of Nelor's loan, provided for in the loan agreement","es":""},"correct":false,"feedback":{"fr":"","en":"A contractual maturity does not depend on the entity's performance (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"The nominal interest rate stated in Nelor's loan agreement","es":""},"correct":false,"feedback":{"fr":"","en":"The nominal rate is fixed by the contract; it does not measure the loss tied to performance (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000040","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.VARIABLE_RETURNS"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"SHARE_OF_RESULTS_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000006","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"numeric-returns"},"references":["IFRS 10 §15"],"exercise":{"prompt":{"fr":"","en":"Othon SA holds 40% of Pelar SA. Pelar's results over three years are €420,000, −€160,000 and €250,000. Case convention: Othon's share is 40% of the result, with no other flow. Calculate its share for each year and the total.","es":""},"explanation":{"fr":"","en":"Share for year 1: €420,000 × 40% = €168,000; year 2: −€160,000 × 40% = −€64,000; year 3: €250,000 × 40% = €100,000. Total: €168,000 + (−€64,000) + €100,000 = €204,000. The share changes sign: the return is variable (IFRS 10).","es":""},"common_error":{"fr":"","en":"Forgetting the negative sign of year 2 in the total.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Pelar's result, year 1","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Pelar's result, year 2","es":""},"value":"-160000","unit":"EUR"},{"label":{"fr":"","en":"Pelar's result, year 3","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held (in %)","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Share for year 1","es":""},"answer":168000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Share for year 2","es":""},"answer":-64000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Total over three years","es":""},"answer":204000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Share for year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Pelar's result, year 1","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Percentage held (in %)","es":""},"value":40,"unit":"PERCENT"}],"result":168000,"unit":"EUR"}],"references":["REF.IFRS10.15"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000041","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.VARIABLE_RETURNS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TECH","tested_point":"RETURNS_SORT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000006","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-returns"},"references":["IFRS 10 §15"],"exercise":{"prompt":{"fr":"","en":"Sort each item: variable return for the investor, or item unrelated to the entity's performance.","es":""},"explanation":{"fr":"","en":"Rule to remember: a return is variable if it depends on the entity's performance (IFRS 10).","es":""},"common_error":{"fr":"","en":"Treating administrative data as returns.","es":""},"format":"CLASSIFICATION","categories":[{"id":"var","text":{"fr":"","en":"Variable return","es":""}},{"id":"non","text":{"fr":"","en":"Unrelated to performance","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Dividends proportional to the entity's profit","es":""},"category":"var"},{"id":"i2","text":{"fr":"","en":"Share of the entity's losses borne by the investor","es":""},"category":"var"},{"id":"i3","text":{"fr":"","en":"Cost savings made through access to the entity's technology","es":""},"category":"var"},{"id":"i4","text":{"fr":"","en":"Address of the entity's registered office","es":""},"category":"non"},{"id":"i5","text":{"fr":"","en":"Year-end date of the entity","es":""},"category":"non"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000042","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.LINK"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"LINK_SEPARATED","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000006","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-link"},"references":["IFRS 10 §17"],"exercise":{"prompt":{"fr":"","en":"Quill SA has the power to direct Rovex SA, but all of Rovex's results go to other investors, without Quill bearing their variability. What can be said about the link?","es":""},"explanation":{"fr":"","en":"Rule to remember: without the power affecting its own returns, there is no link (IFRS 10).","es":""},"common_error":{"fr":"","en":"Treating power as sufficient.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The link is established: Quill directs the entity, which is enough for the third element","es":""},"correct":false,"feedback":{"fr":"","en":"The power must affect the investor's own returns (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"The link is missing, because Quill cannot affect its own variable returns through its power","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The link is established as soon as the other investors obtain high returns","es":""},"correct":false,"feedback":{"fr":"","en":"Others' returns do not create a link for Quill (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"The link is irrelevant, because a link exists when the investor holds the majority of capital","es":""},"correct":false,"feedback":{"fr":"","en":"The link does not depend on a percentage of capital but on influence over its returns (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000043","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.LINK"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"LINK_FILL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS10.000006","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-link"},"references":["IFRS 10 §17"],"exercise":{"prompt":{"fr":"","en":"Complete the rule on the link.","es":""},"explanation":{"fr":"","en":"Rule to remember: the link ties the investor's power to its own returns (IFRS 10).","es":""},"common_error":{"fr":"","en":"Saying that power must affect the returns of any party.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The investor controls if it can use its {{b1}} to affect the amount of its {{b2}} returns.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"power","es":""}},{"id":"b","text":{"fr":"","en":"capital","es":""}},{"id":"c","text":{"fr":"","en":"balance sheet","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"future","es":""}},{"id":"b","text":{"fr":"","en":"own","es":""}},{"id":"c","text":{"fr":"","en":"average","es":""}}],"answer":"b"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000044","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.PRINCIPAL_VS_AGENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"AGENT_DOES_NOT_CONTROL","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"understand"},"references":["IFRS 10 §B58"],"exercise":{"prompt":{"fr":"","en":"An agent that exercises the decision rights delegated to it does not, through those rights, control the investee.","es":""},"explanation":{"fr":"","en":"Rule to remember: the agent acts for others and does not control through the delegated rights (IFRS 10, para. B58).","es":""},"common_error":{"fr":"","en":"Deducing control from the mere taking of decisions.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000045","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.PRINCIPAL_VS_AGENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"MANAGER_ROLE_CASE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-agent"},"references":["IFRS 10 §B58"],"exercise":{"prompt":{"fr":"","en":"Gestion Varenne manages the Hélix fund for clients who bear nearly all the gains and losses. It receives market fees and holds only token units. What role does Varenne play?","es":""},"explanation":{"fr":"","en":"Rule to remember: a decision maker acting on behalf and for the benefit of others is an agent (IFRS 10, para. B58).","es":""},"common_error":{"fr":"","en":"Concluding on the role of principal on the basis of decision-making power alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Agent, because it acts on behalf of the clients and does not control Hélix through these rights","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Principal: its investment decisions give it control of the fund it manages for its clients","es":""},"correct":false,"feedback":{"fr":"","en":"Delegated decision-making power is not enough: it acts for others (IFRS 10, para. B58).","es":""}},{"id":"C","text":{"fr":"","en":"Principal: the market fees it receives show that it acts for its own account","es":""},"correct":false,"feedback":{"fr":"","en":"Market fees are consistent with an agent's role (IFRS 10, para. B58).","es":""}},{"id":"D","text":{"fr":"","en":"Impossible to say: the role is unrelated to the facts about the fund or its holders","es":""},"correct":false,"feedback":{"fr":"","en":"The role is determined on the facts of the fund, the holders and the mandate (IFRS 10, para. B58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000046","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.FACTORS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"AGENCY_FACTORS_MULTI","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-factors"},"references":["IFRS 10 §B60"],"exercise":{"prompt":{"fr":"","en":"Which items enter the decision maker's principal / agent analysis? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: authority, others' rights, remuneration and exposure are the factors (IFRS 10).","es":""},"common_error":{"fr":"","en":"Adding criteria about the size of the decision maker.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The number of employees the decision maker has in its own offices","es":""},"correct":false,"feedback":{"fr":"","en":"The decision maker's headcount is not among the factors of the analysis (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"The scope of its decision-making authority","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The rights held by other parties, for example removal rights","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Its remuneration against the services provided","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000047","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.FACTORS","IFRS10.AGENCY.REMUNERATION_EXPOSURE"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"FINANCE","tested_point":"FACTORS_LEAN_SORT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-factors"},"references":["IFRS 10 §B60"],"exercise":{"prompt":{"fr":"","en":"For each fact in a case, say which role it points the analysis towards (no fact is enough on its own).","es":""},"explanation":{"fr":"","en":"Rule to remember: these facts guide the judgment but are weighed together, with none determinative alone (IFRS 10).","es":""},"common_error":{"fr":"","en":"Concluding on an isolated fact.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ag","text":{"fr":"","en":"Points towards an agent's role","es":""}},{"id":"pr","text":{"fr":"","en":"Points towards a principal's role","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A single party can remove it at any time, without cause","es":""},"category":"ag"},{"id":"i2","text":{"fr":"","en":"Its remuneration is at market level and commensurate with the management work","es":""},"category":"ag"},{"id":"i3","text":{"fr":"","en":"It holds a significant share of the fund's units, which varies with performance","es":""},"category":"pr"},{"id":"i4","text":{"fr":"","en":"It guaranteed a minimum return to the holders and bears the losses beyond that","es":""},"category":"pr"},{"id":"i5","text":{"fr":"","en":"Its mandate sets strict limits that the holders can change","es":""},"category":"ag"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000048","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.REMOVAL_RIGHTS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"REMOVAL_SINGLE_PARTY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-removal"},"references":["IFRS 10 §B60"],"exercise":{"prompt":{"fr":"","en":"The Zéphyr fund has a reference investor that can remove the manager at any time and without cause; exercise is possible in practice. What effect on the manager's analysis?","es":""},"explanation":{"fr":"","en":"Rule to remember: a substantive removal right, exercisable by a single party without cause, can be enough to indicate an agent (IFRS 10).","es":""},"common_error":{"fr":"","en":"Reading a removal right as a sign of the decision maker's power.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No effect: rights held by other parties do not count in the decision maker's analysis","es":""},"correct":false,"feedback":{"fr":"","en":"The rights of other parties are a factor of the analysis (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"It proves that the manager is a principal: someone can decide its fate","es":""},"correct":false,"feedback":{"fr":"","en":"A removal right points towards the agent's role, not the principal's (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"It makes the right non-substantive, because a right exercisable without cause is a protective right","es":""},"correct":false,"feedback":{"fr":"","en":"A right exercisable without cause and in practice is substantive (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"This substantive right of a single party can be enough to conclude that the manager is an agent","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000049","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.REMUNERATION_EXPOSURE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"REMUNERATION_EXPOSURE_NO_THRESHOLD","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-remuneration"},"references":["IFRS 10 §B68"],"exercise":{"prompt":{"fr":"","en":"A colleague says: \"the manager is a principal as soon as its total exposure exceeds a percentage that the standard sets\". How should you reply?","es":""},"explanation":{"fr":"","en":"Rule to remember: exposure is a judgment factor, not a threshold of the standard (IFRS 10).","es":""},"common_error":{"fr":"","en":"Applying a percentage from practice as a rule.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"That is right: the threshold is in the text and is enough to conclude on the role","es":""},"correct":false,"feedback":{"fr":"","en":"The standard contains no exposure threshold of this kind (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"That is right for funds, but the threshold varies with the type of fund managed","es":""},"correct":false,"feedback":{"fr":"","en":"No threshold exists, by fund type or otherwise (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"The standard sets no exposure threshold: the analysis covers all the facts","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"That is wrong: exposure is of no importance in the principal / agent analysis","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure to other interests is a factor, to be weighed with the others (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000050","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.FACTORS","IFRS10.AGENCY.PRINCIPAL_VS_AGENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"AGENCY_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"pitfalls"},"references":["IFRS 10 §B58"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the principal / agent analysis.","es":""},"explanation":{"fr":"","en":"Rule to remember: the factors are weighed together (IFRS 10).","es":""},"common_error":{"fr":"","en":"Making one factor the sole criterion.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The decision maker first determines whether it acts as principal or agent.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"A manager can be an agent of one fund and a principal of another.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"A single factor, such as remuneration, makes it possible to conclude without examining the others.","es":""},"erroneous":true,"correction":{"fr":"","en":"The factors are analysed together; none is determinative on its own (IFRS 10).","es":""}},{"id":"s4","text":{"fr":"","en":"The removal rights of other parties are among the items examined.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS10.000051","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.PRINCIPAL_VS_AGENT","IFRS10.AGENCY.REMOVAL_RIGHTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"MINICASE_MANAGER_REMOVAL","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-agent"},"references":["IFRS 10 §B58"],"exercise":{"prompt":{"fr":"","en":"Conclude on the role of Gestion Cassian in the Nimbus fund.","es":""},"explanation":{"fr":"","en":"Rule to remember: the role is determined by weighing together the mandate, others' rights, remuneration and exposure (IFRS 10).","es":""},"common_error":{"fr":"","en":"Stopping at the first factor found.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Gestion Cassian manages the Nimbus fund under a mandate that limits its investments to rated bonds. Its fees match market practice for this type of mandate. It holds token units of Nimbus. The 120 unit holders can remove Cassian only unanimously; they do not coordinate. Teaching assumption: Cassian takes all investment decisions on its own.","es":""},"parts":[{"prompt":{"fr":"","en":"Which facts point towards an agent's role? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: a limited mandate, market remuneration and low exposure point towards an agent (IFRS 10).","es":""},"common_error":{"fr":"","en":"Taking decision-making capacity as a sign of a principal.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Token units held in the fund","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fact that Cassian takes the investment decisions itself","es":""},"correct":false,"feedback":{"fr":"","en":"Taking the decisions is the starting point of the analysis, not a sign of a principal's role (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"A mandate that limits its investments","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Fees in line with market practice","es":""},"correct":true}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"The unanimous removal right of 120 dispersed holders weighs heavily in favour of an agent's role.","es":""},"explanation":{"fr":"","en":"A right that requires the unanimity of many dispersed holders is hard to exercise in practice: it weighs little (IFRS 10).","es":""},"common_error":{"fr":"","en":"Counting a theoretical removal right as a substantive right.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which overall conclusion looks best supported by the facts?","es":""},"explanation":{"fr":"","en":"Rule to remember: the factors are weighed together to form a judgment (IFRS 10).","es":""},"common_error":{"fr":"","en":"Letting one weak factor carry the conclusion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cassian is a principal, because the holders' removal right is unusable in practice","es":""},"correct":false,"feedback":{"fr":"","en":"One weak factor does not determine the conclusion; the factors are weighed together (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Cassian is a principal, because it takes the decisions and exceeds a percentage set by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no percentage and Cassian holds token units (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Cassian is likely an agent, despite the weakness of the removal right held by the holders","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A conclusion is impossible until the holders have exercised their removal right","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis concerns the existing rights, exercised or not (IFRS 10).","es":""}}],"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000052","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.FUND_MANAGER_JUDGMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"SINGLE_INVESTOR_FUND_STATUS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-fund"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Tarval SA is the only investor in a fund run by an external manager. What can be said, in 2026, about the rule applying to its control of the fund?","es":""},"explanation":{"fr":"","en":"Rule to remember: a request to the Committee is not a rule in force; the position is documented as a judgment (IFRS 10).","es":""},"common_error":{"fr":"","en":"Presenting a tentative decision or a request as a rule.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The Committee decided in 2026 that the single investor is deemed to hold the manager's decision rights","es":""},"correct":false,"feedback":{"fr":"","en":"No final decision is established; it is a request with two practices described (proposal).","es":""}},{"id":"B","text":{"fr":"","en":"A 2026 request describes two practices, with no final decision: the position is a documented judgment","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The standard sets a percentage of units beyond which the single investor controls the fund","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no threshold of this kind (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"The Committee ruled out in 2026 that an external manager can be the agent of a single-investor fund","es":""},"correct":false,"feedback":{"fr":"","en":"No exclusion of this kind is established; the question remains open (proposal).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000053","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.FUND_MANAGER_JUDGMENT","IFRS10.AGENCY.REMUNERATION_EXPOSURE"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"FUND_MANAGER_FACTORS_ADV","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS10.000007","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-fund"},"references":["IFRS 10 §B72"],"exercise":{"prompt":{"fr":"","en":"For a manager that also holds units of the fund and gave a return guarantee, which elements of judgment point towards a principal's role? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: cumulative exposure, others' rights and the scope of authority are weighed together, with no threshold (IFRS 10).","es":""},"common_error":{"fr":"","en":"Looking for a numerical threshold to settle it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The absence of a substantive removal right held by a single party","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Broad decision-making authority, with few limits set by the mandate","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An exposure threshold set by the standard and crossed by the manager","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no exposure threshold; the analysis covers all the factors (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"Exposure to variability on top of its remuneration, coming from its units and its guarantee","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000054","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.COMBINATION_ELIMINATION"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"CONSOLIDATION_STEPS_ORDER","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-combination"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Put the operations for preparing consolidated statements in order.","es":""},"explanation":{"fr":"","en":"Rule to remember: combine, eliminate the investment, eliminate intragroup items, then present the third parties' share (IFRS 10).","es":""},"common_error":{"fr":"","en":"Eliminating before having combined.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Add up like items of the parent and the subsidiary line by line","es":""}},{"id":"s2","text":{"fr":"","en":"Eliminate the parent's investment against its share of the subsidiary's equity","es":""}},{"id":"s3","text":{"fr":"","en":"Eliminate intragroup balances, transactions and unrealised profits","es":""}},{"id":"s4","text":{"fr":"","en":"Present the third parties' share as non-controlling interest","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000055","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.COMBINATION_ELIMINATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRY","tested_point":"ELIMINATION_NCI_TOTAL_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"numeric-combination"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Mirval SA holds 75% of Nordane SA for an investment of €1,350,000. Nordane's equity: share capital €550,000, reserves €1,250,000. Mirval's total assets, investment included: €6,350,000; Nordane's total assets: €3,200,000. Case convention: the investment equals Mirval's share of Nordane's equity. Calculate the parent's share, the non-controlling interest and total consolidated assets.","es":""},"explanation":{"fr":"","en":"Nordane's equity: €550,000 + €1,250,000 = €1,800,000. Mirval's share: €1,800,000 × 75% = €1,350,000, equal to the investment. Non-controlling interest: €1,800,000 × 25% = €450,000. Consolidated assets: €6,350,000 + €3,200,000 − €1,350,000 = €8,200,000 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Forgetting to remove the investment from total assets.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Nordane's share capital","es":""},"value":"550000","unit":"EUR"},{"label":{"fr":"","en":"Nordane's reserves","es":""},"value":"1250000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held by Mirval (in %)","es":""},"value":"75","unit":"PERCENT"},{"label":{"fr":"","en":"Mirval's total assets (investment included)","es":""},"value":"6350000","unit":"EUR"},{"label":{"fr":"","en":"Nordane's total assets","es":""},"value":"3200000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Mirval's share of Nordane's equity","es":""},"answer":1350000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Non-controlling interest","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Total consolidated assets","es":""},"answer":8200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Mirval's share of Nordane's equity","es":""},"expression":"(a + b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Nordane's share capital","es":""},"value":550000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Nordane's reserves","es":""},"value":1250000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Percentage held by Mirval (in %)","es":""},"value":75,"unit":"PERCENT"}],"result":1350000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Total consolidated assets","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Mirval's total assets (investment included)","es":""},"value":6350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Nordane's total assets","es":""},"value":3200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Mirval's share of Nordane's equity","es":""},"value":1350000,"unit":"EUR"}],"result":8200000,"unit":"EUR"}],"rationale":{"fr":"","en":"Consolidated assets: €6,350,000 + €3,200,000 − €1,350,000 = €8,200,000 (IFRS 10).","es":""},"references":["REF.IFRS10.B86"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000056","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.COMBINATION_ELIMINATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"INDUSTRY","tested_point":"ELIMINATION_ENTRY_JE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"entry-elimination"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"In the consolidation worksheet of Mirval SA (75% of Nordane SA), post the entry eliminating the investment of €1,350,000. Nordane's share capital: €550,000; Nordane's reserves: €1,250,000. Case convention: the investment equals Mirval's share of Nordane's equity.","es":""},"explanation":{"fr":"","en":"Nordane's equity (€550,000 + €1,250,000 = €1,800,000) is eliminated by debit; the investment of €1,350,000 and the non-controlling interest of €450,000 are credited. No profit or loss is recognised (IFRS 10).","es":""},"common_error":{"fr":"","en":"Taking the difference to consolidated profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cap","text":{"fr":"","en":"Nordane's share capital","es":""}},{"id":"res","text":{"fr":"","en":"Nordane's reserves","es":""}},{"id":"inv","text":{"fr":"","en":"Investment in Nordane","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interest","es":""}},{"id":"pl","text":{"fr":"","en":"Consolidated profit or loss","es":""}}],"lines":[{"id":"l1","account":"cap","side":"DEBIT","amount":550000,"given":["account","side"]},{"id":"l2","account":"res","side":"DEBIT","amount":1250000,"given":["account","side"]},{"id":"l3","account":"inv","side":"CREDIT","amount":1350000,"given":["account","side"]},{"id":"l4","account":"nci","side":"CREDIT","amount":450000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000057","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.COMBINATION_ELIMINATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"ELIMINATED_VS_KEPT_SORT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-combination"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"For each item in the consolidation worksheet, say whether it is eliminated or kept (added up line by line).","es":""},"explanation":{"fr":"","en":"Rule to remember: the investment and the subsidiary's equity are eliminated; items with parties outside the group are added up (IFRS 10).","es":""},"common_error":{"fr":"","en":"Eliminating items that are not duplications.","es":""},"format":"CLASSIFICATION","categories":[{"id":"elim","text":{"fr":"","en":"Eliminated","es":""}},{"id":"keep","text":{"fr":"","en":"Kept and added up","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The investment recorded in the parent's assets for the subsidiary's shares","es":""},"category":"elim"},{"id":"i2","text":{"fr":"","en":"The subsidiary's share capital","es":""},"category":"elim"},{"id":"i3","text":{"fr":"","en":"The subsidiary's inventories held for sale to outside customers","es":""},"category":"keep"},{"id":"i4","text":{"fr":"","en":"The loan taken out by the parent from a bank outside the group","es":""},"category":"keep"},{"id":"i5","text":{"fr":"","en":"The parent's cash and the subsidiary's cash","es":""},"category":"keep"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000058","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.UNIFORM_POLICIES"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"UNIFORM_INVENTORY_ADJUSTMENT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"numeric-uniform"},"references":["IFRS 10 §19"],"exercise":{"prompt":{"fr":"","en":"Jorvan SA's subsidiary measures its inventories at first-in, first-out: €690,000 at year-end. Under the group's formula, the same inventories are worth €640,000. The parent's inventories are €1,100,000. Case convention: tax and effect on third parties ignored. Calculate the consolidation adjustment and consolidated inventories.","es":""},"explanation":{"fr":"","en":"Adjustment: €690,000 − €640,000 = €50,000, made in the consolidation. Consolidated inventories: €1,100,000 + €690,000 − €50,000 = €1,740,000, that is €1,100,000 + €640,000 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Correcting inventories in the subsidiary's accounts.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Subsidiary's inventories (subsidiary's formula)","es":""},"value":"690000","unit":"EUR"},{"label":{"fr":"","en":"Same inventories (group formula)","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Parent's inventories","es":""},"value":"1100000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Consolidation adjustment","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Consolidated inventories","es":""},"answer":1740000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Consolidation adjustment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Subsidiary's inventories (subsidiary's formula)","es":""},"value":690000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Same inventories (group formula)","es":""},"value":640000,"unit":"EUR"}],"result":50000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Consolidated inventories","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Parent's inventories","es":""},"value":1100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Subsidiary's inventories (subsidiary's formula)","es":""},"value":690000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Consolidation adjustment","es":""},"value":50000,"unit":"EUR"}],"result":1740000,"unit":"EUR"}],"rationale":{"fr":"","en":"Consolidated inventories: €1,100,000 + €690,000 − €50,000 = €1,740,000, that is €1,100,000 + €640,000 (IFRS 10).","es":""},"references":["REF.IFRS10.19"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000059","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.UNIFORM_POLICIES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"WHERE_TO_ADJUST_POLICY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-uniform"},"references":["IFRS 10 §19"],"exercise":{"prompt":{"fr":"","en":"Lanvel SA's subsidiary applies an accounting policy different from the group's for like transactions. Where should the adjustment be made?","es":""},"explanation":{"fr":"","en":"Rule to remember: the uniformity adjustment is a consolidation entry (IFRS 10).","es":""},"common_error":{"fr":"","en":"Correcting the subsidiary's statutory accounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the consolidation, without changing the subsidiary's own financial statements","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In the subsidiary's individual accounting, which must adopt the group's policy","es":""},"correct":false,"feedback":{"fr":"","en":"Uniformity is made in the consolidation, not in the subsidiary's own statements (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"In the parent's accounts, which takes over the subsidiary's policy for the whole group","es":""},"correct":false,"feedback":{"fr":"","en":"The parent sets uniform policies; the subsidiary's policy is not imposed on the group (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"In the notes, through a mention of the difference in policy","es":""},"correct":false,"feedback":{"fr":"","en":"A mere mention does not replace adjusting the consolidated figures (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000060","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.REPORTING_DATES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"DATES_HIERARCHY_CASE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-dates"},"references":["IFRS 10 §B92"],"exercise":{"prompt":{"fr":"","en":"A subsidiary of Mirel SA closes on 30 September, the parent on 31 December. Preparing additional information at 31 December is impracticable. Which approach respects the hierarchy?","es":""},"explanation":{"fr":"","en":"Rule to remember: additional information, otherwise latest statements adjusted, with a gap limited to three months (IFRS 10).","es":""},"common_error":{"fr":"","en":"Using unadjusted statements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ignore the difference in dates: the subsidiary need not follow the parent's calendar","es":""},"correct":false,"feedback":{"fr":"","en":"The gap must be dealt with: additional information, or adjusted statements (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Use the 30 September statements without adjustment, the three-month gap being accepted","es":""},"correct":false,"feedback":{"fr":"","en":"The effects of significant events between the two dates must be adjusted (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Use the 30 June statements, older, to keep a stable consolidation period","es":""},"correct":false,"feedback":{"fr":"","en":"A six-month gap exceeds the three-month limit (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"Use the subsidiary's latest statements, adjusted, with a gap of at most three months","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000061","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.REPORTING_DATES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DATES_THREE_MONTHS_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-dates"},"references":["IFRS 10 §B92"],"exercise":{"prompt":{"fr":"","en":"A six-month gap between the parent's reporting date and the subsidiary's is accepted if the parent mentions it in the notes.","es":""},"explanation":{"fr":"","en":"Rule to remember: the gap between the dates does not exceed three months (IFRS 10).","es":""},"common_error":{"fr":"","en":"Thinking a mention in the notes makes up for too long a gap.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000062","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.UNIFORM_POLICIES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"UNIFORM_ADJUST_IN_CONSOLIDATION_TRUE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000008","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-uniform"},"references":["IFRS 10 §19"],"exercise":{"prompt":{"fr":"","en":"The adjustments that make accounting policies uniform are made within the consolidation, without changing the subsidiary's own financial statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: uniformity adjustments are consolidation entries (IFRS 10).","es":""},"common_error":{"fr":"","en":"Thinking that the subsidiary must change its own accounting.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000063","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"IGROUP_FULL_ELIMINATION_TRUE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"understand"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Receivables and payables between group companies stay in the consolidated statements, because they exist legally in the individual accounts.","es":""},"explanation":{"fr":"","en":"Rule to remember: intragroup balances are eliminated in full (IFRS 10).","es":""},"common_error":{"fr":"","en":"Keeping internal balances in the consolidated balance sheet.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000064","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"UNREALISED_PROFIT_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"numeric-unrealised"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Sandrel SA sells goods to its subsidiary Tavion SA for €900,000. Tavion resold 30% outside; 70% is in inventory at year-end. Case convention: Sandrel's margin is 30% of the transfer price. Calculate the remaining inventory at transfer price and the unrealised profit to eliminate.","es":""},"explanation":{"fr":"","en":"Remaining inventory: €900,000 × 70% = €630,000. Unrealised profit: €630,000 × 30% = €189,000 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Applying the margin to the total price instead of the remaining inventory.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Transfer price of the goods sold to Tavion","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Share still in inventory (in %)","es":""},"value":"70","unit":"PERCENT"},{"label":{"fr":"","en":"Seller's margin on the transfer price (in %)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Remaining inventory at transfer price","es":""},"answer":630000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Unrealised profit to eliminate","es":""},"answer":189000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Remaining inventory at transfer price","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Transfer price of the goods sold to Tavion","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share still in inventory (in %)","es":""},"value":70,"unit":"PERCENT"}],"result":630000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Unrealised profit to eliminate","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remaining inventory at transfer price","es":""},"value":630000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Seller's margin on the transfer price (in %)","es":""},"value":30,"unit":"PERCENT"}],"result":189000,"unit":"EUR"}],"rationale":{"fr":"","en":"Unrealised profit: €630,000 × 30% = €189,000 (IFRS 10).","es":""},"references":["REF.IFRS10.B86"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000065","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FOOD","tested_point":"UNREALISED_PROFIT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"entry-unrealised"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Hesper SA sold goods to its subsidiary, of which €450,000 remain in inventory at transfer price. Case convention: Hesper's margin is 20% of the transfer price. Post the consolidation entry eliminating the unrealised profit.","es":""},"explanation":{"fr":"","en":"Unrealised profit: €450,000 × 20% = €90,000. Debit elimination of unrealised profit and credit inventories, for €90,000 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Crediting sales instead of inventories.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"elim","text":{"fr":"","en":"Elimination of unrealised profit (profit or loss)","es":""}},{"id":"inv","text":{"fr":"","en":"Inventories","es":""}},{"id":"recv","text":{"fr":"","en":"Receivable from a group company","es":""}},{"id":"sales","text":{"fr":"","en":"Sales","es":""}}],"lines":[{"id":"l1","account":"elim","side":"DEBIT","amount":90000,"given":["account","side"]},{"id":"l2","account":"inv","side":"CREDIT","amount":90000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000066","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"BALANCE_ELIMINATION_ENTRY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"entry-unrealised"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"At year-end, Isard SA owes €275,000 to its subsidiary Jalmar SA, which records it as a receivable. Post the consolidation entry eliminating this intragroup balance.","es":""},"explanation":{"fr":"","en":"Isard's payable and Jalmar's receivable, of €275,000, offset each other: debit payable to a group company, credit receivable from a group company. No effect on profit or loss (IFRS 10).","es":""},"common_error":{"fr":"","en":"Posting the elimination to cash.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"pay","text":{"fr":"","en":"Payable to a group company (Isard)","es":""}},{"id":"rec","text":{"fr":"","en":"Receivable from a group company (Jalmar)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"pay","side":"DEBIT","amount":275000,"given":["account","side"]},{"id":"l2","account":"rec","side":"CREDIT","amount":275000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000067","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRY","tested_point":"CONSOLIDATED_REVENUE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"rule-eliminate"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"The Kelvan group has two companies. Revenue: €5,400,000 and €3,100,000. Cost of sales: €3,900,000 and €2,200,000. The second company bought €700,000 of goods from the first, all resold outside before year-end. Calculate consolidated revenue, consolidated cost of sales and consolidated gross profit.","es":""},"explanation":{"fr":"","en":"Revenue: €5,400,000 + €3,100,000 − €700,000 = €7,800,000. Cost of sales: €3,900,000 + €2,200,000 − €700,000 = €5,400,000. Gross profit: €7,800,000 − €5,400,000 = €2,400,000, equal to the sum of the individual margins because no internal inventory remains (IFRS 10).","es":""},"common_error":{"fr":"","en":"Forgetting to eliminate internal purchases from cost of sales.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"First company's revenue","es":""},"value":"5400000","unit":"EUR"},{"label":{"fr":"","en":"Second company's revenue","es":""},"value":"3100000","unit":"EUR"},{"label":{"fr":"","en":"First company's cost of sales","es":""},"value":"3900000","unit":"EUR"},{"label":{"fr":"","en":"Second company's cost of sales","es":""},"value":"2200000","unit":"EUR"},{"label":{"fr":"","en":"Internal sales (second company's internal purchases)","es":""},"value":"700000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Consolidated revenue","es":""},"answer":7800000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Consolidated cost of sales","es":""},"answer":5400000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Consolidated gross profit","es":""},"answer":2400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Consolidated revenue","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"First company's revenue","es":""},"value":5400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Second company's revenue","es":""},"value":3100000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Internal sales (second company's internal purchases)","es":""},"value":700000,"unit":"EUR"}],"result":7800000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Consolidated cost of sales","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"First company's cost of sales","es":""},"value":3900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Second company's cost of sales","es":""},"value":2200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Internal sales (second company's internal purchases)","es":""},"value":700000,"unit":"EUR"}],"result":5400000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Consolidated gross profit","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consolidated revenue","es":""},"value":7800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"First company's revenue","es":""},"value":5400000,"unit":"EUR"}],"result":2400000,"unit":"EUR"}],"rationale":{"fr":"","en":"Gross profit: €7,800,000 − €5,400,000 = €2,400,000, equal to the sum of the individual margins because no internal inventory remains (IFRS 10).","es":""},"references":["REF.IFRS10.B86"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000068","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MEDIA","tested_point":"IGROUP_SORT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"rule-eliminate"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Sort each item of a group: eliminated on consolidation, or kept because it concerns third parties outside the group.","es":""},"explanation":{"fr":"","en":"Rule to remember: what is internal to the group is eliminated; what is with outsiders is kept (IFRS 10).","es":""},"common_error":{"fr":"","en":"Eliminating transactions with third parties.","es":""},"format":"CLASSIFICATION","categories":[{"id":"elim","text":{"fr":"","en":"Eliminated","es":""}},{"id":"keep","text":{"fr":"","en":"Kept","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Receivable of one group company on another group company","es":""},"category":"elim"},{"id":"i2","text":{"fr":"","en":"Interest paid by a subsidiary to its parent on an internal loan","es":""},"category":"elim"},{"id":"i3","text":{"fr":"","en":"Sales of goods to customers outside the group","es":""},"category":"keep"},{"id":"i4","text":{"fr":"","en":"Debt of a subsidiary to a supplier outside the group","es":""},"category":"keep"},{"id":"i5","text":{"fr":"","en":"Internal profit contained in inventory still held by a group company","es":""},"category":"elim"},{"id":"i6","text":{"fr":"","en":"Staff costs of the subsidiary's employees","es":""},"category":"keep"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000069","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"IGROUP_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"pitfalls"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about eliminating intragroup transactions.","es":""},"explanation":{"fr":"","en":"Rule to remember: intragroup eliminations are in full (IFRS 10).","es":""},"common_error":{"fr":"","en":"Eliminating only the fraction held by the parent.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"Internal sales and purchases are eliminated from consolidated income and expenses.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The unrealised profit concerns the margin contained in remaining assets.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The elimination of intragroup balances has no effect on consolidated profit.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"If the selling subsidiary has minority shareholders, the elimination is limited to the parent's share of the unrealised profit.","es":""},"erroneous":true,"correction":{"fr":"","en":"The elimination is in full, whatever the third parties' share (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS10.000070","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RESOLD_GOODS_NOT_UNREALISED","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS10.000009","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"rule-remaining"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"The profit made on intragroup goods already resold to outside customers must be eliminated as unrealised profit.","es":""},"explanation":{"fr":"","en":"Rule to remember: the profit on goods resold outside is realised; the remaining assets carry the unrealised profit (IFRS 10).","es":""},"common_error":{"fr":"","en":"Eliminating the profit on all the year's internal sales.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000071","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.PRESENTATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NCI_IN_EQUITY_TRUE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"understand"},"references":["IFRS 10 §22"],"exercise":{"prompt":{"fr":"","en":"Non-controlling interests are presented within consolidated equity, separately from the equity of the owners of the parent.","es":""},"explanation":{"fr":"","en":"Rule to remember: the third parties' share is in equity, presented separately (IFRS 10).","es":""},"common_error":{"fr":"","en":"Classing the third parties among the subsidiary's debts.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000072","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.ATTRIBUTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"NCI_SHARE_PROFIT_OCI_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"numeric-attribution"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"Vaslan SA holds 70% of Wexor SA. Wexor made a profit of €520,000 and other comprehensive income of −€60,000. Calculate the share of the non-controlling interests (30%) in profit, in other comprehensive income, then in total comprehensive income.","es":""},"explanation":{"fr":"","en":"Profit: €520,000 × 30% = €156,000. Other comprehensive income: −€60,000 × 30% = −€18,000. Third parties' total comprehensive income: €156,000 + (−€18,000) = €138,000 (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Not attributing other comprehensive income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Wexor's profit","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Wexor's other comprehensive income","es":""},"value":"-60000","unit":"EUR"},{"label":{"fr":"","en":"Third parties' percentage (in %)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Third parties' share of profit","es":""},"answer":156000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Third parties' share of other comprehensive income","es":""},"answer":-18000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Third parties' share of total comprehensive income","es":""},"answer":138000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Third parties' share of profit","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Wexor's profit","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Third parties' percentage (in %)","es":""},"value":30,"unit":"PERCENT"}],"result":156000,"unit":"EUR"}],"rationale":{"fr":"","en":"Third parties' total comprehensive income: €156,000 + (−€18,000) = €138,000 (IFRS 10, para. B94).","es":""},"references":["REF.IFRS10.B94"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000073","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.ATTRIBUTION","IFRS10.NCI.DEFICIT_BALANCE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECH","tested_point":"NCI_ROLL_FORWARD_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"numeric-attribution"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"The non-controlling interest in Xylen SA stood at €365,000 at the start of the year. For the year, the third parties' share is €82,000 of profit and −€12,000 of other comprehensive income; Xylen paid them €45,000 of dividends. Calculate the third parties' interest at year-end.","es":""},"explanation":{"fr":"","en":"Closing: €365,000 + €82,000 + (−€12,000) − €45,000 = €390,000 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Forgetting to deduct the dividends paid to the third parties.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Third parties' interest at opening","es":""},"value":"365000","unit":"EUR"},{"label":{"fr":"","en":"Third parties' share of profit","es":""},"value":"82000","unit":"EUR"},{"label":{"fr":"","en":"Third parties' share of other comprehensive income","es":""},"value":"-12000","unit":"EUR"},{"label":{"fr":"","en":"Dividends paid to the third parties","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Third parties' interest at year-end","es":""},"answer":390000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS10.000074","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.ATTRIBUTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"NCI_ATTRIBUTION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"entry-attribution"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"In Yorvan SA's consolidation, the third parties' share of its subsidiary's profit for the year is €58,000. Post the attribution entry (transfer between components of equity).","es":""},"explanation":{"fr":"","en":"The attribution transfers €58,000 from the owners of the parent to the third parties: debit profit attributable to the owners, credit non-controlling interest. Consolidated profit does not change (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Posting the attribution through an expense for the year.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"own","text":{"fr":"","en":"Profit attributable to the owners of the parent (equity)","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interest","es":""}},{"id":"exp","text":{"fr":"","en":"Expense for the year","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"own","side":"DEBIT","amount":58000,"given":["account","side"]},{"id":"l2","account":"nci","side":"CREDIT","amount":58000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000075","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.DEFICIT_BALANCE"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"NCI_DEFICIT_BALANCE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"numeric-deficit"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"Zandor SA loses €350,000 for the year. The third parties hold 40% of Zandor, and their interest stood at €85,000 before the loss. Case convention: no other movement. Calculate the share of the loss attributed to the third parties and their interest at year-end.","es":""},"explanation":{"fr":"","en":"Share of the loss: €350,000 × 40% = €140,000. Interest at year-end: €85,000 − €140,000 = −€55,000, a deficit balance, not capped at zero (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Capping the third parties' interest at zero.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Zandor's loss","es":""},"value":"350000","unit":"EUR"},{"label":{"fr":"","en":"Third parties' percentage (in %)","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Third parties' interest before the loss","es":""},"value":"85000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Share of the loss attributed to the third parties","es":""},"answer":140000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Third parties' interest at year-end","es":""},"answer":-55000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Share of the loss attributed to the third parties","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Zandor's loss","es":""},"value":350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Third parties' percentage (in %)","es":""},"value":40,"unit":"PERCENT"}],"result":140000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Third parties' interest at year-end","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Third parties' interest before the loss","es":""},"value":85000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the loss attributed to the third parties","es":""},"value":140000,"unit":"EUR"}],"result":-55000,"unit":"EUR"}],"rationale":{"fr":"","en":"Interest at year-end: €85,000 − €140,000 = −€55,000, a deficit balance, not capped at zero (IFRS 10, para. B94).","es":""},"references":["REF.IFRS10.B94"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000076","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.DEFICIT_BALANCE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"DEFICIT_WHY_NOT_CAPPED","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-deficit"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"A subsidiary loses more than the balance of its third parties' interest. How is the excess loss treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: the attribution to the third parties is not capped at zero (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Making the parent bear the excess loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is carried over to the owners of the parent, the third parties' share being limited to zero","es":""},"correct":false,"feedback":{"fr":"","en":"Total comprehensive income is attributed to both, even with a deficit balance (IFRS 10, para. B94).","es":""}},{"id":"B","text":{"fr":"","en":"It is ignored in the consolidated statements: it exceeds the third parties' equity","es":""},"correct":false,"feedback":{"fr":"","en":"The subsidiary's loss is consolidated at 100% and split between the two groups (IFRS 10, para. B94).","es":""}},{"id":"C","text":{"fr":"","en":"It is recognised as a debt of the parent to the subsidiary's third parties","es":""},"correct":false,"feedback":{"fr":"","en":"A deficit balance is not a debt of the parent: it stays within equity (IFRS 10, para. B94).","es":""}},{"id":"D","text":{"fr":"","en":"It remains attributed to the third parties, whose interest becomes a deficit","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000077","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.ATTRIBUTION","IFRS10.NCI.PRESENTATION","IFRS10.NCI.DEFICIT_BALANCE"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"NCI_TREATMENT_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-attribution"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"Match each item to its treatment for non-controlling interests.","es":""},"explanation":{"fr":"","en":"Rule to remember: attribution at current percentages, deficit balance possible, presentation in equity (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Linking the third parties' dividends to a consolidated expense.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Subsidiary's profit","es":""}},{"id":"l2","text":{"fr":"","en":"Loss exceeding the third parties' balance","es":""}},{"id":"l3","text":{"fr":"","en":"Presentation of the third parties in the balance sheet","es":""}},{"id":"l4","text":{"fr":"","en":"Dividends paid to the third parties","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Attributed according to current ownership interests","es":""}},{"id":"r2","text":{"fr":"","en":"Deficit balance possible, with no floor at zero","es":""}},{"id":"r3","text":{"fr":"","en":"Within equity, separately from the parent's","es":""}},{"id":"r4","text":{"fr":"","en":"Reduce the third parties' interest","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000078","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.PREFERENCE_SHARES"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"PREFERENCE_DIVIDEND_CALC","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"numeric-preference"},"references":["IFRS 10 §B95"],"exercise":{"prompt":{"fr":"","en":"Elmor SA, a subsidiary of Fargan SA, made a profit of €560,000. Third parties hold cumulative preference shares whose dividend is €60,000 a year. Fargan holds 80% of the ordinary shares. Case convention: the preference dividend is due, whether or not declared. Calculate the profit attributable to ordinary shares, Fargan's share and the total attributed to the third parties.","es":""},"explanation":{"fr":"","en":"Ordinary profit: €560,000 − €60,000 = €500,000. Fargan's share: €500,000 × 80% = €400,000. Third parties: (€500,000 − €400,000) + €60,000 = €100,000 + €60,000 = €160,000. Check: €400,000 + €160,000 = €560,000 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Applying the parent's percentage to profit before the preference dividend.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Elmor's profit","es":""},"value":"560000","unit":"EUR"},{"label":{"fr":"","en":"Annual preference dividend of the third parties","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Fargan's percentage of ordinary shares (in %)","es":""},"value":"80","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Profit attributable to ordinary shares","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Fargan's share","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Total attributed to the third parties","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Profit attributable to ordinary shares","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Elmor's profit","es":""},"value":560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual preference dividend of the third parties","es":""},"value":60000,"unit":"EUR"}],"result":500000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Fargan's share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary shares","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fargan's percentage of ordinary shares (in %)","es":""},"value":80,"unit":"PERCENT"}],"result":400000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Total attributed to the third parties","es":""},"expression":"(a - b) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit attributable to ordinary shares","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fargan's share","es":""},"value":400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual preference dividend of the third parties","es":""},"value":60000,"unit":"EUR"}],"result":160000,"unit":"EUR"}],"rationale":{"fr":"","en":"Check: €400,000 + €160,000 = €560,000 (IFRS 10).","es":""},"references":["REF.IFRS10.B95"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000079","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.PREFERENCE_SHARES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"PREFERENCE_UNDECLARED","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS10.000010","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-preference"},"references":["IFRS 10 §B95"],"exercise":{"prompt":{"fr":"","en":"A subsidiary has cumulative preference shares classified in equity and held by third parties. This year, no preference dividend was declared. What is the effect on the parent's share of profit?","es":""},"explanation":{"fr":"","en":"Rule to remember: cumulative dividends are deducted whether declared or not (IFRS 10).","es":""},"common_error":{"fr":"","en":"Waiting for the declaration to adjust.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No adjustment is made until the preference dividend has been declared by the subsidiary","es":""},"correct":false,"feedback":{"fr":"","en":"For cumulative shares, the adjustment applies whether declared or not (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"The dividend is added to the parent's profit, because the third parties have not yet received it","es":""},"correct":false,"feedback":{"fr":"","en":"The cumulative dividend belongs to the third parties; it reduces the parent's share (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"The cumulative dividend is deducted from profit before the parent's share, even if not declared","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The dividend is split between the parent and the third parties according to their percentages on ordinary shares","es":""},"correct":false,"feedback":{"fr":"","en":"It belongs to the holders of the preference shares, that is the third parties (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000080","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OWNERSHIP_EQUITY_TRANSACTION_TRUE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"understand"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"When a parent increases its interest in a subsidiary without losing control, it recognises a profit or loss equal to the difference between the price paid and the carrying amount acquired.","es":""},"explanation":{"fr":"","en":"Rule to remember: a change without loss of control is a transaction with owners (IFRS 10, para. 23).","es":""},"common_error":{"fr":"","en":"Seeing it as a disposal of assets giving rise to a gain or loss.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000081","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"PURCHASE_FROM_NCI_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"numeric-purchase"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"Gordal SA holds 65% of Hexor SA. The third parties hold 35%, for a carrying amount of €840,000. Gordal buys 5 points from the third parties for €150,000. Case convention: the third parties' carrying amount is the basis, goodwill included; no transaction costs. Calculate the third parties' interest transferred and the difference taken to the owners' equity.","es":""},"explanation":{"fr":"","en":"Interest transferred: €840,000 × 5 / 35 = €120,000. Difference: €150,000 − €120,000 = €30,000, taken as a decrease in the owners' equity; no profit or loss and no additional goodwill (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Taking the difference to profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the third parties' interest","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Third parties' percentage before the transaction (in %)","es":""},"value":"35","unit":"PERCENT"},{"label":{"fr":"","en":"Points bought from the third parties (in %)","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Price paid","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Third parties' interest transferred","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Decrease in the equity of the owners of the parent","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Decrease in the equity of the owners of the parent","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Third parties' interest transferred","es":""},"value":120000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"references":["REF.IFRS10.B96"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000082","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"PURCHASE_FROM_NCI_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"entry-purchase"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"Itlan SA buys from third parties a share of its subsidiary for €118,000 in cash. The third parties' interest transferred is €90,000. Case convention: no transaction costs. Post the consolidated entry.","es":""},"explanation":{"fr":"","en":"Debit the third parties' interest for €90,000, debit the owners' equity for the difference (€118,000 − €90,000 = €28,000), credit cash for €118,000. No profit or loss account (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Posting the difference as a loss in profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"nci","text":{"fr":"","en":"Non-controlling interest","es":""}},{"id":"eq","text":{"fr":"","en":"Equity attributable to the owners of the parent","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"pl","text":{"fr":"","en":"Loss on buy-back of shares (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"nci","side":"DEBIT","amount":90000,"given":["account","side"]},{"id":"l2","account":"eq","side":"DEBIT","amount":28000,"given":["account","side"]},{"id":"l3","account":"cash","side":"CREDIT","amount":118000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000083","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TRANSPORT","tested_point":"PARTIAL_DISPOSAL_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"numeric-sale"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"Jarden SA holds 85% of Kasper SA and sells 8 points to third parties for €390,000. Case convention: Kasper's consolidated net assets, goodwill included, are €2,750,000 and are the basis of the third parties' share; no transaction costs. Calculate the increase in the third parties' interest and the difference taken to the owners' equity.","es":""},"explanation":{"fr":"","en":"Increase for the third parties: €2,750,000 × 8% = €220,000. Difference: €390,000 − €220,000 = €170,000, taken as an increase in the owners' equity; no gain (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Recognising a disposal gain in profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Kasper's consolidated net assets (goodwill included)","es":""},"value":"2750000","unit":"EUR"},{"label":{"fr":"","en":"Points sold (in %)","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Consideration received","es":""},"value":"390000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Increase in the third parties' interest","es":""},"answer":220000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Increase in the equity of the owners of the parent","es":""},"answer":170000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Increase in the third parties' interest","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Kasper's consolidated net assets (goodwill included)","es":""},"value":2750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Points sold (in %)","es":""},"value":8,"unit":"PERCENT"}],"result":220000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Increase in the equity of the owners of the parent","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration received","es":""},"value":390000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Increase in the third parties' interest","es":""},"value":220000,"unit":"EUR"}],"result":170000,"unit":"EUR"}],"references":["REF.IFRS10.B96"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000084","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"PARTIAL_DISPOSAL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"entry-sale"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"Lumel SA sells to third parties a share of its subsidiary, without losing control, and receives €310,000 in cash. The third parties' interest increases by €190,000. Case convention: no transaction costs. Post the consolidated entry.","es":""},"explanation":{"fr":"","en":"Debit cash for €310,000, credit the third parties' interest for €190,000, credit the owners' equity for the difference (€310,000 − €190,000 = €120,000). No gain in profit or loss (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Crediting a disposal gain instead of equity.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interest","es":""}},{"id":"eq","text":{"fr":"","en":"Equity attributable to the owners of the parent","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on disposal of shares (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":310000,"given":["account","side"]},{"id":"l2","account":"nci","side":"CREDIT","amount":190000,"given":["account","side"]},{"id":"l3","account":"eq","side":"CREDIT","amount":120000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000085","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"DIFFERENCE_WHERE_RECOGNISED","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"rule-equity"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"A parent sells shares of its subsidiary for a price above the increase in the third parties' interest and keeps control. Where does the difference go?","es":""},"explanation":{"fr":"","en":"Rule to remember: the difference is recognised directly in equity and attributed to the owners of the parent (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Recognising a gain on a disposal without loss of control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In consolidated profit or loss, as a gain on disposal of the subsidiary's shares","es":""},"correct":false,"feedback":{"fr":"","en":"Without loss of control, no gain is recognised (IFRS 10, para. B96).","es":""}},{"id":"B","text":{"fr":"","en":"Directly in equity, where it is attributed to the owners of the parent","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In goodwill: the price received exceeds the carrying amount of the shares sold","es":""},"correct":false,"feedback":{"fr":"","en":"No additional goodwill arises (IFRS 10, para. B96).","es":""}},{"id":"D","text":{"fr":"","en":"In other comprehensive income, to be recycled on a later disposal","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is a movement between owners, directly in equity (IFRS 10, para. B96).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000086","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"OWNERSHIP_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"pitfalls"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about a change in percentage without loss of control.","es":""},"explanation":{"fr":"","en":"Rule to remember: no profit or loss and no additional goodwill (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Calculating goodwill on the share acquired as for a takeover.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"A parent acquiring an additional share from the third parties recognises additional goodwill.","es":""},"erroneous":true,"correction":{"fr":"","en":"No additional goodwill arises; the difference goes to equity (IFRS 10, para. B96).","es":""}},{"id":"s2","text":{"fr":"","en":"The third parties' interest is adjusted to reflect the new relative interests.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"No profit or loss is recognised in the consolidated income statement.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The difference with the consideration is attributed to the owners of the parent.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000087","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.COSTS_AND_OCI_SPLIT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"TRANSACTION_COSTS_SILENCE","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"rule-silences"},"references":["IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"A parent incurs fees to buy back shares from its third parties without losing control. What does the standard say about charging these transaction costs?","es":""},"explanation":{"fr":"","en":"Rule to remember: costs directly related to a transaction with owners are charged to equity, not to profit or loss (Interpretations Committee agenda decision, 2009); the transaction remains an equity transaction (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Treating transaction costs as a policy choice or expensing them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 10 does not deal with them directly; existing requirements, as noted by the Interpretations Committee in 2009, attach them to the transaction with the third parties: they are charged to equity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It requires them to be expensed in the year, as for a business combination","es":""},"correct":false,"feedback":{"fr":"","en":"Costs related to a transaction with owners are not expensed: they are charged to equity (Committee agenda decision, 2009).","es":""}},{"id":"C","text":{"fr":"","en":"It leaves a choice between profit or loss and equity, under a documented policy","es":""},"correct":false,"feedback":{"fr":"","en":"There is no choice: costs related to a transaction with owners are charged to equity (Committee agenda decision, 2009).","es":""}},{"id":"D","text":{"fr":"","en":"It splits them between the parent and the third parties according to their percentages before the transaction","es":""},"correct":false,"feedback":{"fr":"","en":"No allocation of this type is provided by the standard (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000088","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.COSTS_AND_OCI_SPLIT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GOODWILL_ALLOCATION_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS10.000011","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"rule-silences"},"references":["IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"The standard requires goodwill to be allocated between the parent and the third parties in proportion to the new percentages on a partial disposal without loss of control.","es":""},"explanation":{"fr":"","en":"Rule to remember: the standard does not say how to allocate goodwill; it is a documented policy (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Taking an example's convention for a rule.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000089","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.GAIN_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"GAIN_FORMULA_FILL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS10.000012","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-gain"},"references":["IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"Complete the formula for the gain or loss on loss of control.","es":""},"explanation":{"fr":"","en":"Rule to remember: fair values received and retained, less the carrying amount derecognised (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Comparing two fair values or two carrying amounts.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Gain or loss = {{b1}} of the consideration received and of the retained investment, less the {{b2}} of the assets, liabilities and non-controlling interests derecognised.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"the fair value","es":""}},{"id":"b","text":{"fr":"","en":"the historical cost","es":""}},{"id":"c","text":{"fr":"","en":"the nominal value","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"carrying amount","es":""}},{"id":"b","text":{"fr":"","en":"fair value","es":""}},{"id":"c","text":{"fr":"","en":"tax base","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000090","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.DERECOGNITION","IFRS10.LOSS.GAIN_OR_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRY","tested_point":"GAIN_ON_LOSS_OF_CONTROL_CALC","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS10.000012","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"numeric-gain"},"references":["IFRS 10 §25","IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"Brisal SA loses control of Cordane SA. At the date of loss, Cordane's consolidated assets (goodwill included) are €5,100,000, its liabilities €2,000,000 and the non-controlling interests €640,000. Brisal receives €2,300,000 in cash and keeps an investment with a fair value of €750,000. Case convention: other comprehensive income ignored. Calculate the net assets derecognised, the fair value received and retained, and the gain.","es":""},"explanation":{"fr":"","en":"Net assets: €5,100,000 − €2,000,000 = €3,100,000. Fair value received and retained: €2,300,000 + €750,000 = €3,050,000. Gain: €3,050,000 + €640,000 − €3,100,000 = €590,000 (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Forgetting to add the non-controlling interests in the formula.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cordane's consolidated assets (goodwill included)","es":""},"value":"5100000","unit":"EUR"},{"label":{"fr":"","en":"Cordane's liabilities","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Non-controlling interests","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Cash received","es":""},"value":"2300000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the retained investment","es":""},"value":"750000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Net assets derecognised","es":""},"answer":3100000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Fair value received and retained","es":""},"answer":3050000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Gain on loss of control","es":""},"answer":590000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Net assets derecognised","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cordane's consolidated assets (goodwill included)","es":""},"value":5100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cordane's liabilities","es":""},"value":2000000,"unit":"EUR"}],"result":3100000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Fair value received and retained","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash received","es":""},"value":2300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the retained investment","es":""},"value":750000,"unit":"EUR"}],"result":3050000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Gain on loss of control","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value received and retained","es":""},"value":3050000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-controlling interests","es":""},"value":640000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Net assets derecognised","es":""},"value":3100000,"unit":"EUR"}],"result":590000,"unit":"EUR"}],"rationale":{"fr":"","en":"Gain: €3,050,000 + €640,000 − €3,100,000 = €590,000 (IFRS 10, para. B98).","es":""},"references":["REF.IFRS10.B98"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000091","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.DERECOGNITION","IFRS10.LOSS.RETAINED_INTEREST","IFRS10.LOSS.GAIN_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"INDUSTRY","tested_point":"LOSS_OF_CONTROL_GAIN_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS10.000012","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"entry-loss"},"references":["IFRS 10 §25","IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"Take Brisal SA's loss of control of Cordane SA: assets €5,100,000, liabilities €2,000,000, non-controlling interests €640,000, cash received €2,300,000, retained investment at fair value €750,000, gain €590,000. Post the consolidated entry.","es":""},"explanation":{"fr":"","en":"Debits: €2,300,000 + €750,000 + €640,000 + €2,000,000; credits: €5,100,000 + €590,000. The entry balances and the gain is taken to profit or loss (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Leaving the gain in equity.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"ret","text":{"fr":"","en":"Retained investment, at fair value","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interests","es":""}},{"id":"liab","text":{"fr":"","en":"Cordane's liabilities","es":""}},{"id":"assets","text":{"fr":"","en":"Cordane's assets (goodwill included)","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on loss of control (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":2300000,"given":["account","side"]},{"id":"l2","account":"ret","side":"DEBIT","amount":750000,"given":["account","side"]},{"id":"l3","account":"nci","side":"DEBIT","amount":640000,"given":["account","side"]},{"id":"l4","account":"liab","side":"DEBIT","amount":2000000,"given":["account","side"]},{"id":"l5","account":"assets","side":"CREDIT","amount":5100000,"given":["account","side"]},{"id":"l6","account":"gain","side":"CREDIT","amount":590000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000092","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.GAIN_OR_LOSS","IFRS10.LOSS.DERECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LOSS_RESULT_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS10.000012","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-gain"},"references":["IFRS 10 §B98","IFRS 10 §25"],"exercise":{"prompt":{"fr":"","en":"Dorvan SA sells all of its subsidiary Eldar SA and loses control. Eldar's consolidated assets (goodwill included): €3,500,000; liabilities: €900,000; non-controlling interests: €450,000. Dorvan receives €1,300,000 and keeps no shares. Case convention: other comprehensive income ignored. Calculate the parent's share of net assets and the result of the loss of control.","es":""},"explanation":{"fr":"","en":"Net assets: €3,500,000 − €900,000 = €2,600,000; parent's share: €2,600,000 − €450,000 = €2,150,000. Result: €1,300,000 − €2,150,000 = −€850,000, that is a loss of €850,000 (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Ignoring the negative sign of the result.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Eldar's consolidated assets (goodwill included)","es":""},"value":"3500000","unit":"EUR"},{"label":{"fr":"","en":"Eldar's liabilities","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Non-controlling interests","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Cash received","es":""},"value":"1300000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Parent's share of net assets derecognised","es":""},"answer":2150000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Result of the loss of control (negative for a loss)","es":""},"answer":-850000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Parent's share of net assets derecognised","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Eldar's consolidated assets (goodwill included)","es":""},"value":3500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Eldar's liabilities","es":""},"value":900000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Non-controlling interests","es":""},"value":450000,"unit":"EUR"}],"result":2150000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Result of the loss of control (negative for a loss)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash received","es":""},"value":1300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Parent's share of net assets derecognised","es":""},"value":2150000,"unit":"EUR"}],"result":-850000,"unit":"EUR"}],"references":["REF.IFRS10.B98"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000093","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.DERECOGNITION","IFRS10.LOSS.GAIN_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"LOSS_OF_CONTROL_LOSS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS10.000012","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"entry-loss"},"references":["IFRS 10 §25","IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"Take Dorvan SA's full sale of Eldar: assets €3,500,000, liabilities €900,000, non-controlling interests €450,000, cash received €1,300,000, no shares kept, loss of €850,000. Post the consolidated entry.","es":""},"explanation":{"fr":"","en":"Debits: €1,300,000 + €900,000 + €450,000 + €850,000 = €3,500,000; credit assets: €3,500,000. The loss of €850,000 is a debit to profit or loss (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Crediting the loss instead of debiting it.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"liab","text":{"fr":"","en":"Eldar's liabilities","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interests","es":""}},{"id":"loss","text":{"fr":"","en":"Loss on loss of control (profit or loss)","es":""}},{"id":"assets","text":{"fr":"","en":"Eldar's assets (goodwill included)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":1300000,"given":["account","side"]},{"id":"l2","account":"liab","side":"DEBIT","amount":900000,"given":["account","side"]},{"id":"l3","account":"nci","side":"DEBIT","amount":450000,"given":["account","side"]},{"id":"l4","account":"loss","side":"DEBIT","amount":850000,"given":["account","side"]},{"id":"l5","account":"assets","side":"CREDIT","amount":3500000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000094","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.DERECOGNITION","IFRS10.LOSS.RETAINED_INTEREST","IFRS10.LOSS.GAIN_OR_LOSS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"LOSS_ITEMS_SORT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000012","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-steps"},"references":["IFRS 10 §25","IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"On loss of control, sort each item: derecognised, or recognised at fair value.","es":""},"explanation":{"fr":"","en":"Rule to remember: what leaves is derecognised at carrying amount; what is received or kept comes in at fair value (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Reversing the measurement bases.","es":""},"format":"CLASSIFICATION","categories":[{"id":"der","text":{"fr":"","en":"Derecognised","es":""}},{"id":"fv","text":{"fr":"","en":"Recognised at fair value","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The former subsidiary's assets, goodwill included","es":""},"category":"der"},{"id":"i2","text":{"fr":"","en":"The former subsidiary's liabilities","es":""},"category":"der"},{"id":"i3","text":{"fr":"","en":"The carrying amount of the non-controlling interests","es":""},"category":"der"},{"id":"i4","text":{"fr":"","en":"The consideration received for the shares sold","es":""},"category":"fv"},{"id":"i5","text":{"fr":"","en":"The shares kept in the former subsidiary","es":""},"category":"fv"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000095","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.GAIN_OR_LOSS","IFRS10.LOSS.RETAINED_INTEREST"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"REMEASUREMENT_PART","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000012","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"numeric-fvpart"},"references":["IFRS 10 §B98","IFRS 10 §25"],"exercise":{"prompt":{"fr":"","en":"After a loss of control, the retained investment has a fair value of €480,000, whereas the corresponding share of the net assets derecognised is €390,000. How much of the gain comes from remeasuring the retained interest?","es":""},"explanation":{"fr":"","en":"Rule to remember: the part of the gain due to remeasurement is fair value less the share derecognised (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Taking the entire fair value for a gain.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€90,000: fair value less the share of net assets derecognised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€480,000: the whole fair value of the retained investment","es":""},"correct":false,"feedback":{"fr":"","en":"Only the gap between fair value and the share derecognised is a remeasurement gain (IFRS 10, para. B98).","es":""}},{"id":"C","text":{"fr":"","en":"€390,000: the share of net assets derecognised corresponding to the retained interest","es":""},"correct":false,"feedback":{"fr":"","en":"It is the basis of comparison, not the remeasurement gain (IFRS 10, para. B98).","es":""}},{"id":"D","text":{"fr":"","en":"Nil: a remeasurement of the retained interest does not enter the gain","es":""},"correct":false,"feedback":{"fr":"","en":"The remeasurement is included in the gain, and its part is identified (disclosure required by IFRS 12).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000096","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.OCI_RECLASSIFICATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRY","tested_point":"OCI_RECLASS_NEGATIVE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"numeric-oci"},"references":["IFRS 10 §B98","IFRS 10 §B99"],"exercise":{"prompt":{"fr":"","en":"Hartley SA loses control of a foreign subsidiary. The gain calculated before reclassification is €410,000. The cumulative translation differences relating to the subsidiary are a loss of €35,000, reclassified to profit or loss on loss of control. Calculate the amount reclassified (negative for a loss) and the total gain.","es":""},"explanation":{"fr":"","en":"Reclassification: −€35,000, a loss taken to profit or loss. Total gain: €410,000 + (−€35,000) = €375,000 (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Adding the cumulative loss instead of deducting it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gain before reclassification","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative translation differences (loss)","es":""},"value":"-35000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Amount reclassified to profit or loss","es":""},"answer":-35000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Total gain on loss of control","es":""},"answer":375000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Total gain on loss of control","es":""},"expression":"a + (-b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gain before reclassification","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The cumulative translation differences relating to the subsidiary are a loss of €35,000","es":""},"value":35000,"unit":"EUR"}],"result":375000,"unit":"EUR"}],"rationale":{"fr":"","en":"Total gain: €410,000 + (−€35,000) = €375,000 (IFRS 10, para. B98).","es":""},"references":["REF.IFRS10.B98"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000097","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.OCI_RECLASSIFICATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"OCI_RECLASS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"numeric-oci"},"references":["IFRS 10 §B98","IFRS 10 §B99"],"exercise":{"prompt":{"fr":"","en":"On loss of control of a foreign subsidiary, Ilford SA must reclassify to profit or loss cumulative translation differences of €52,000 (a gain, credit balance in other comprehensive income). Post the reclassification entry.","es":""},"explanation":{"fr":"","en":"The credit balance is cleared by a debit to translation differences of €52,000, against a credit to profit or loss of €52,000. The gain on loss of control increases by that amount (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Crediting reserves instead of profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"oci","text":{"fr":"","en":"Cumulative translation differences (other comprehensive income)","es":""}},{"id":"pl","text":{"fr":"","en":"Gain reclassified (profit or loss)","es":""}},{"id":"res","text":{"fr":"","en":"Reserves","es":""}}],"lines":[{"id":"l1","account":"oci","side":"DEBIT","amount":52000,"given":["account","side"]},{"id":"l2","account":"pl","side":"CREDIT","amount":52000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000098","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.OCI_RECLASSIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"REVALUATION_SURPLUS_TREATMENT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-oci"},"references":["IFRS 10 §B98","IFRS 10 §B99"],"exercise":{"prompt":{"fr":"","en":"A subsidiary that is sold held a revalued building, with a revaluation surplus accumulated in other comprehensive income. The applicable IFRS provides for its transfer to reserves when the asset leaves. How is it treated on loss of control?","es":""},"explanation":{"fr":"","en":"Rule to remember: the amounts follow the IFRS applicable to each component, as on direct disposal of the assets (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Reclassifying every component to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is reclassified to profit or loss and increases the gain on loss of control","es":""},"correct":false,"feedback":{"fr":"","en":"The applicable IFRS provides here for a transfer to reserves, not a reclassification to profit or loss (IFRS 10, para. B98).","es":""}},{"id":"B","text":{"fr":"","en":"It stays in other comprehensive income, because the parent keeps a share of the former subsidiary","es":""},"correct":false,"feedback":{"fr":"","en":"The amounts are treated as if the assets were disposed of directly, whether or not a share is kept (IFRS 10, para. B98).","es":""}},{"id":"C","text":{"fr":"","en":"It is added to the selling price of the shares and reduces the goodwill derecognised accordingly","es":""},"correct":false,"feedback":{"fr":"","en":"It enters neither the consideration nor goodwill; it follows the treatment of a direct disposal (IFRS 10, para. B98).","es":""}},{"id":"D","text":{"fr":"","en":"It is transferred within equity, because the applicable IFRS provides for it","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000099","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.MULTIPLE_ARRANGEMENTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"LINKED_DISPOSALS_CASE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-multiple"},"references":["IFRS 10 §B97"],"exercise":{"prompt":{"fr":"","en":"Mervyn SA sells 35% of its subsidiary in February, then 20% in May to the same buyer. Both contracts are signed on the same day; the second sale takes place only if the first does. How should they be analysed?","es":""},"explanation":{"fr":"","en":"Rule to remember: arrangements entered into together and interdependent can form a single transaction (IFRS 10).","es":""},"common_error":{"fr":"","en":"Relying on execution dates to separate the transactions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separately, because two distinct execution dates require two distinct transactions","es":""},"correct":false,"feedback":{"fr":"","en":"Different dates do not rule out interdependence; the arrangements must be examined (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Separately, because each sale stays below the percentage set by the standard for a single transaction","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no percentage for grouping arrangements (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"As a single loss-of-control transaction, being entered into together and interdependent","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As changes in percentage in equity, as long as control remains in February","es":""},"correct":false,"feedback":{"fr":"","en":"If the arrangements form one transaction, the loss of control is accounted for on the whole (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000100","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.MULTIPLE_ARRANGEMENTS","IFRS10.LOSS.OCI_RECLASSIFICATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"LOSS_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"pitfalls"},"references":["IFRS 10 §B97"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about loss of control through several arrangements.","es":""},"explanation":{"fr":"","en":"Rule to remember: no time gap settles it; the terms, economic effect and interdependence are examined (IFRS 10).","es":""},"common_error":{"fr":"","en":"Applying a fixed time gap to separate two sales.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"Disposal arrangements can be accounted for as a single transaction.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"A six-month gap between two sales is enough to treat them as two separate transactions.","es":""},"erroneous":true,"correction":{"fr":"","en":"No time gap is a criterion of the standard; the terms, joint effect and interdependence are examined (IFRS 10).","es":""}},{"id":"s3","text":{"fr":"","en":"Interdependence between the arrangements is an item to consider.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"Other comprehensive income is treated as if the assets had been disposed of directly.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000101","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IAS28"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"RETAINED_INTEREST_ASSOCIATE_COST","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-ias28"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"After losing control of Norvel SA, the parent keeps 30% and has significant influence. What does the fair value of the retained interest become?","es":""},"explanation":{"fr":"","en":"Rule to remember: the fair value of the retained interest becomes the cost of an associate (IFRS 10).","es":""},"common_error":{"fr":"","en":"Keeping the old consolidated carrying amount as cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Financial income, recognised in profit or loss and then carried at fair value each year","es":""},"correct":false,"feedback":{"fr":"","en":"With significant influence, the interest becomes an equity-accounted associate (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"The cost on initial recognition of an associate, then accounted for by the equity method","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill recognised in addition to the subsidiary's, with no effect on the associate's cost","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value becomes the associate's cost; it is not additional goodwill (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"An equity reserve, with no entry among assets in the consolidated balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"The retained interest is a balance-sheet asset, recognised at fair value (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000102","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IFRS9"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"RETAINED_INTEREST_FINANCIAL_ASSET","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-ifrs9"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"After losing control of a subsidiary, the parent keeps 8% of the shares, with neither significant influence nor joint control. How should the retained interest be treated at loss of control?","es":""},"explanation":{"fr":"","en":"Rule to remember: without significant influence or joint control, the retained interest is a financial asset initially at fair value (IFRS 10).","es":""},"common_error":{"fr":"","en":"Continuing equity accounting without significant influence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an associate, whose cost is the previous consolidated carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"Without significant influence, the interest is not an associate; its initial amount is fair value (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"As a financial asset, because neither significant influence nor joint control remains","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As an interest consolidated proportionally at 8%","es":""},"correct":false,"feedback":{"fr":"","en":"Without control or joint control, the interest is not consolidated (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"As an asset recognised at the previous carrying amount until the next closing","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value at loss of control is the initial amount of the financial asset (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000103","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.SALE_TO_ASSOCIATE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"AMENDMENT_2014_STATUS","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-amendment"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"A colleague wants to apply, for the current year, the full gain provided by the 2014 amendments for the sale of a business to an associate. What should you reply?","es":""},"explanation":{"fr":"","en":"Rule to remember: a text with a deferred effective date is not a rule in force; check the status before applying it (2014 amendments).","es":""},"common_error":{"fr":"","en":"Applying a deferred text as if it were in force.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Their effective date is deferred: check the status before applying them","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They have been in force since 2014 and therefore apply to the current year","es":""},"correct":false,"feedback":{"fr":"","en":"Their effective date was deferred indefinitely (2014 amendments).","es":""}},{"id":"C","text":{"fr":"","en":"They were abandoned and their content was removed from the editions of the standard","es":""},"correct":false,"feedback":{"fr":"","en":"They were published, but their effective date is deferred (2014 amendments).","es":""}},{"id":"D","text":{"fr":"","en":"They apply to subsidiaries, not to businesses, under a 2026 decision","es":""},"correct":false,"feedback":{"fr":"","en":"No decision of this kind is established for 2026; the point is the deferred date (2014 amendments).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000104","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.SALE_TO_ASSOCIATE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"AMENDMENT_FULL_PARTIAL_TF","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS10.000013","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-amendment"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"In the 2014 amendments, the gain is full when the assets sold to the associate constitute a business, and partial otherwise.","es":""},"explanation":{"fr":"","en":"Rule to remember: this distinction is part of the content of the 2014 amendments, whose effective date is deferred.","es":""},"common_error":{"fr":"","en":"Remembering the distinction without the deferred status.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000105","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"INVESTMENT_ENTITY_ELEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-definition"},"references":["IFRS 10 §27"],"exercise":{"prompt":{"fr":"","en":"What are the three elements of the definition of an investment entity?","es":""},"explanation":{"fr":"","en":"Rule to remember: investors' funds, commitment to returns, fair value measurement (IFRS 10).","es":""},"common_error":{"fr":"","en":"Adding size or listing criteria.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A minimum capital set by the standard, numerous investors and a stock-exchange listing","es":""},"correct":false,"feedback":{"fr":"","en":"These criteria are not in the definition (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"A regulatory licence, delegated management and historical cost accounting","es":""},"correct":false,"feedback":{"fr":"","en":"Measurement must be at fair value, not at historical cost (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"Holding more than one subsidiary, an annual dividend and quarterly management control","es":""},"correct":false,"feedback":{"fr":"","en":"These are possible facts, not the three elements of the definition (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"Investors' funds under management, a commitment to returns, fair value measurement","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000106","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.DEFINITION","IFRS10.INVESTMENT.CHARACTERISTICS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"ELEMENT_VS_TYPICAL_SORT","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-characteristics"},"references":["IFRS 10 §27"],"exercise":{"prompt":{"fr":"","en":"Sort each fact: element of the definition of an investment entity, or typical characteristic.","es":""},"explanation":{"fr":"","en":"Rule to remember: three elements of definition; four typical characteristics, which are not mandatory (IFRS 10).","es":""},"common_error":{"fr":"","en":"Treating a typical characteristic as an element of the definition.","es":""},"format":"CLASSIFICATION","categories":[{"id":"def","text":{"fr":"","en":"Element of the definition","es":""}},{"id":"typ","text":{"fr":"","en":"Typical characteristic","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"It obtains funds from investors to provide them with investment management services","es":""},"category":"def"},{"id":"i2","text":{"fr":"","en":"It measures and evaluates the performance of substantially all its investments at fair value","es":""},"category":"def"},{"id":"i3","text":{"fr":"","en":"It holds more than one investment","es":""},"category":"typ"},{"id":"i4","text":{"fr":"","en":"Its investors are not related to the entity","es":""},"category":"typ"},{"id":"i5","text":{"fr":"","en":"It commits to its investors to invest for capital appreciation or investment income","es":""},"category":"def"},{"id":"i6","text":{"fr":"","en":"Its ownership interests take the form of equity","es":""},"category":"typ"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000107","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.CHARACTERISTICS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"TYPICAL_CHARACTERISTIC_MISSING","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-characteristics"},"references":["IFRS 10 §28"],"exercise":{"prompt":{"fr":"","en":"The absence of a typical characteristic does not automatically rule out investment entity status, but calls for a disclosure under IFRS 12.","es":""},"explanation":{"fr":"","en":"Rule to remember: typical characteristics are not mandatory; their absence calls for a disclosure (IFRS 10).","es":""},"common_error":{"fr":"","en":"Making a typical characteristic an entry condition.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000108","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.EXCEPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"INVESTMENT_ENTITY_NO_CONSOLIDATION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-exception"},"references":["IFRS 10 §31"],"exercise":{"prompt":{"fr":"","en":"An investment entity obtains control of a portfolio company held for capital appreciation. How does it treat this investment?","es":""},"explanation":{"fr":"","en":"Rule to remember: the investment entity measures its subsidiaries at fair value through profit or loss (IFRS 10, para. 31).","es":""},"common_error":{"fr":"","en":"Consolidating a portfolio company out of habit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It consolidates it line by line and applies IFRS 3 like any acquirer","es":""},"correct":false,"feedback":{"fr":"","en":"The exception removes consolidation and the application of IFRS 3 (IFRS 10, para. 31).","es":""}},{"id":"B","text":{"fr":"","en":"It measures it at fair value, with changes taken to other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"Changes in fair value are taken to profit or loss (IFRS 10, para. 31).","es":""}},{"id":"C","text":{"fr":"","en":"It measures it at fair value through profit or loss, without consolidating","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It equity-accounts it, like an associate","es":""},"correct":false,"feedback":{"fr":"","en":"Equity accounting assumes significant influence, not a control measured at fair value (IFRS 10, para. 31).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000109","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.EXCEPTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"FAIR_VALUE_CHANGE_CALC","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"numeric-exception"},"references":["IFRS 10 §31"],"exercise":{"prompt":{"fr":"","en":"An investment entity holds two portfolio subsidiaries measured at fair value through profit or loss. During the year, the fair value of the first rose by €620,000 and that of the second fell by €180,000. Case convention: no other flow. Calculate the net effect on profit or loss.","es":""},"explanation":{"fr":"","en":"Net effect: €620,000 + (−€180,000) = €440,000, taken to profit or loss without consolidation (IFRS 10, para. 31).","es":""},"common_error":{"fr":"","en":"Forgetting the negative sign of the second change.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Change in fair value of the first subsidiary","es":""},"value":"620000","unit":"EUR"},{"label":{"fr":"","en":"Change in fair value of the second subsidiary","es":""},"value":"-180000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Net effect on profit or loss","es":""},"answer":440000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Net effect on profit or loss","es":""},"expression":"a + (-b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Change in fair value of the first subsidiary","es":""},"value":620000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"that of the second fell by €180,000","es":""},"value":180000,"unit":"EUR"}],"result":440000,"unit":"EUR"}],"rationale":{"fr":"","en":"Net effect: €620,000 + (−€180,000) = €440,000, taken to profit or loss without consolidation (IFRS 10, para. 31).","es":""},"references":["REF.IFRS10.31"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000110","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.EXCEPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"SERVICE_SUBSIDIARY_CONSOLIDATED","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-exception"},"references":["IFRS 10 §31"],"exercise":{"prompt":{"fr":"","en":"An investment entity holds a subsidiary that provides management services related to its investment activities. How is this subsidiary treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: the subsidiary that provides services related to the entity's investments is consolidated (IFRS 10).","es":""},"common_error":{"fr":"","en":"Applying the exception without seeing its own exception.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is measured at fair value through profit or loss, like the portfolio subsidiaries","es":""},"correct":false,"feedback":{"fr":"","en":"The service subsidiary is the exception to the exception: it is consolidated (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"It is left out of the financial statements, because its services are not investments","es":""},"correct":false,"feedback":{"fr":"","en":"It is not excluded: it is consolidated (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"It is consolidated, because it provides services related to the entity's investments","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is equity-accounted, because it carries on a business distinct from the entity's","es":""},"correct":false,"feedback":{"fr":"","en":"Control remains: the service subsidiary is consolidated, not equity-accounted (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000111","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.REASSESSMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"INVESTMENT_STATUS_REASSESS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-reassess"},"references":["IFRS 10 §29"],"exercise":{"prompt":{"fr":"","en":"An investment entity stops measuring its investments at fair value in its internal management and now reports their performance at cost. What is the consequence?","es":""},"explanation":{"fr":"","en":"Rule to remember: a change in one of the elements of the definition requires a reassessment (IFRS 10).","es":""},"common_error":{"fr":"","en":"Treating the status as acquired once and for all.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No consequence: investment entity status is fixed when the entity is created","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment is continuous: a change in the elements requires a reassessment (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"A change in facts requiring a reassessment of its investment entity status","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It loses this status, without further analysis","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment is an overall judgment; it may or may not change the conclusion (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"It must mention it in its notes, the status remaining acquired","es":""},"correct":false,"feedback":{"fr":"","en":"A reassessment is needed, not just a mention (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS10.000112","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IFRS12"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"IFRS12_WHERE_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-ifrs12"},"references":["IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Where are the disclosures on significant judgments in determining control and on unconsolidated structured entities found?","es":""},"explanation":{"fr":"","en":"Rule to remember: the disclosures on control are in IFRS 12 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Looking for the disclosures in the consolidation standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In IFRS 12, which also covers unconsolidated structured entities","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In IFRS 10, in the same paragraph as the definition of control","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures are in IFRS 12, not in IFRS 10 (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"In IFRS 3, which deals with the information relating to combinations","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 3 deals with business combinations; this information is in IFRS 12 (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"In IAS 1, which sets the disclosures specific to each consolidation standard","es":""},"correct":false,"feedback":{"fr":"","en":"This information on control appears in IFRS 12 (IFRS 10).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS10.000113","source":"V2","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.DEFINITION","IFRS10.INVESTMENT.CHARACTERISTICS","IFRS10.INVESTMENT.REASSESSMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"MINICASE_INVESTMENT_ENTITY","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS10.000014","review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"judgment"},"references":["IFRS 10 §27"],"exercise":{"prompt":{"fr":"","en":"Conclude on the investment entity status of Capitale Horizon.","es":""},"explanation":{"fr":"","en":"Rule to remember: three elements of definition, informative typical characteristics, documented overall judgment (IFRS 10).","es":""},"common_error":{"fr":"","en":"Reducing the analysis to a number of investors or holdings.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Capitale Horizon SA raises funds from 35 external investors to manage their investments. It commits by contract to them to invest for capital appreciation. It measures and reports the performance of all its investments at fair value, including to the board. It holds four holdings. One of the investors is a company of its group. Case data.","es":""},"parts":[{"prompt":{"fr":"","en":"Which elements of the definition are met? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: the three elements are met in the facts described (IFRS 10).","es":""},"common_error":{"fr":"","en":"Looking for a numerical threshold that does not exist.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Investors' funds to provide management","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A commitment to invest for capital appreciation","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Measurement of performance at fair value","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A threshold of 50 external investors set by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no number of investors (IFRS 10).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"How should the fact that one investor belongs to the entity's group be treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: the absence of a typical characteristic calls for a disclosure under IFRS 12 (IFRS 10).","es":""},"common_error":{"fr":"","en":"Excluding the entity on one missing criterion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is a ground for immediate exclusion, the typical characteristics being conditions","es":""},"correct":false,"feedback":{"fr":"","en":"The typical characteristics are not mandatory (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"It does not matter, because the standard is not concerned with the nature of investors","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of unrelated investors is a typical characteristic to flag (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"It must then consolidate the holdings held with this investor","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no partial consolidation of this kind (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"A typical characteristic is not met, which calls for a disclosure","es":""},"correct":true}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which overall conclusion looks best supported, and how should it be documented?","es":""},"explanation":{"fr":"","en":"Rule to remember: investment entity status is a documented overall judgment (IFRS 10).","es":""},"common_error":{"fr":"","en":"Concluding on a single criterion or a declaration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Capitale Horizon is not an investment entity, because it holds more than three holdings","es":""},"correct":false,"feedback":{"fr":"","en":"Several investments match a typical characteristic, not a ground for exclusion (IFRS 10).","es":""}},{"id":"B","text":{"fr":"","en":"Capitale Horizon is an investment entity as soon as its articles say so, without further analysis","es":""},"correct":false,"feedback":{"fr":"","en":"Status results from the facts and circumstances, not from a declaration (IFRS 10).","es":""}},{"id":"C","text":{"fr":"","en":"The conclusion depends on the number of external investors, above a threshold in the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no investor threshold (IFRS 10).","es":""}},{"id":"D","text":{"fr":"","en":"Capitale Horizon is likely an investment entity, after a documented overall judgment","es":""},"correct":true}],"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000001","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.CONSOLIDATION_REQUIREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000001","tested_point":"QST.IFRS10.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"understand"},"references":["IFRS 10 §5"],"exercise":{"prompt":{"fr":"","en":"A company becomes a parent, and so must present consolidated financial statements, as soon as it holds a percentage of capital set in advance, without any need to assess control of the investee.","es":""},"explanation":{"fr":"","en":"Being a parent does not follow from a holding percentage: the investor assesses whether it controls the investee, whatever the nature of its involvement (IFRS 10, para. 5). Trap: Basing the requirement to consolidate on a holding threshold without assessing control. Rule to remember: It is the assessment of control, not a fixed percentage, that makes the investor a parent (IFRS 10, para. 5).","es":""},"common_error":{"fr":"","en":"Consolidating automatically from a holding percentage, without analysing control.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000002","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.CONSOLIDATION_REQUIREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000002","tested_point":"QST.IFRS10.000002","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"understand"},"references":["IFRS 10 §5","IFRS 10 §2"],"exercise":{"prompt":{"fr":"","en":"Cèdre SA holds securities in several entities with which it has very different kinds of relationship (equity, loans, management contracts). What determines whether Cèdre SA is a parent?","es":""},"explanation":{"fr":"","en":"For each investee, the investor assesses whether it controls it, whatever the nature of its involvement (equity, loans, contracts); that assessment is what makes it a parent (IFRS 10, para. 5), which requires it to present consolidated financial statements (IFRS 10, para. 2). Trap: Looking for a threshold of amount, number or form of security. Rule to remember: Parent status results from the assessment of control (IFRS 10, para. 5).","es":""},"common_error":{"fr":"","en":"Reasoning on the amount invested or the number of holdings rather than on control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The total capital invested in the investees, compared with its own equity.","es":""},"correct":false,"feedback":{"fr":"","en":"The volume of capital invested says nothing about control: the investor assesses whether it controls the investee, whatever the nature of its involvement (IFRS 10, para. 5). Comparing amounts means reasoning on size and not on power. Rule to remember: Parent status results from control, not from a ratio of amounts (IFRS 10, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"The assessment of its control over each investee, whatever the nature of its involvement with it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The legal form of the securities held, which must be ordinary shares for parent status to exist.","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the involvement, whether through ordinary shares or another link, is not the criterion: it is the assessment of control that determines parent status (IFRS 10, para. 5). Requiring a form of security adds a condition absent from the text. Rule to remember: Control is assessed whatever the nature of the involvement (IFRS 10, para. 5).","es":""}},{"id":"D","text":{"fr":"","en":"The number of investees, parent status arising from the second holding onwards.","es":""},"correct":false,"feedback":{"fr":"","en":"The number of holdings does not create parent status: it is assessed entity by entity, according to whether the investor controls the investee (IFRS 10, para. 5). One controlled entity is enough to make the investor a parent, and ten holdings without control do not. Rule to remember: Control is assessed for each investee (IFRS 10, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000003","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.PARENT_EXEMPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS10.000001","tested_point":"VG.IFRS10.000001","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"rule-exemption"},"references":["IFRS 10 §4"],"exercise":{"prompt":{"fr":"","en":"Which conditions must be met for a parent to be exempt from presenting consolidated financial statements? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"A parent need not consolidate if it meets all the exemption conditions: whole or partial ownership with the other owners informed and not objecting, instruments not traded in a public market, no filing with a regulator for a public issue, and IFRS consolidated statements published by its ultimate or an intermediate parent (IFRS 10, para. 4). Trap: Believing that one condition is enough or that ownership must be total. Rule to remember: The exemption requires all of its conditions to be met (IFRS 10, para. 4).","es":""},"common_error":{"fr":"","en":"Forgetting one of the cumulative conditions, or requiring 100% ownership.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is 100% owned by a single shareholder.","es":""},"correct":false,"feedback":{"fr":"","en":"The parent may be wholly or partly owned, provided the other owners are informed and do not object (IFRS 10, para. 4). Requiring a single shareholder wrongly narrows the exemption. Rule to remember: A partly owned parent can benefit from the exemption if the other owners are informed and do not object (IFRS 10, para. 4).","es":""}},{"id":"B","text":{"fr":"","en":"It has not filed, and is not in the process of filing, its financial statements with a regulator for the purpose of issuing instruments in a public market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Its debt or equity instruments are not traded in a public market.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Its ultimate parent, or an intermediate parent, publishes consolidated financial statements that comply with IFRS and are available for public use.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Meeting one of these exemption conditions is enough to be exempt.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption conditions are cumulative: the parent must meet all those of paragraph 4(a), and meeting one does not remove the need to consolidate (IFRS 10, para. 4). Settling for one of them would omit consolidated statements that are still required. Rule to remember: All the exemption conditions must be met (IFRS 10, para. 4).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000004","standard_id":"IFRS10","concept_ids":["IFRS10.SCOPE.PARENT_EXEMPTION"],"dimension":"APPLICATION","context":"V1_VG.IFRS10.000001","tested_point":"VG.IFRS10.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000001","section_id":"rule-exemption"},"references":["IFRS 10 §4"],"exercise":{"prompt":{"fr":"","en":"Opale SA is 90% owned by Groupe Nacre; the other shareholders have been told that Opale will not present consolidated financial statements and have not objected. Opale's securities are not traded in a public market, Opale has filed nothing with a regulator for a public issue, and Groupe Nacre publishes consolidated financial statements that comply with IFRS and are available for public use. Opale controls several subsidiaries. What is concluded?","es":""},"explanation":{"fr":"","en":"The four conditions of paragraph 4(a) are all met here: Opale is partly owned, with the other owners informed and not objecting; its securities are not traded in a public market; it has filed nothing with a regulator for a public issue; and its ultimate parent publishes IFRS consolidated statements available to the public (IFRS 10, para. 4). It is therefore exempt from consolidating its subsidiaries. Trap: Refusing the exemption because ownership is not total. Rule to remember: The exemption is assessed condition by condition and requires all of them to be met (IFRS 10, para. 4).","es":""},"common_error":{"fr":"","en":"Refusing the exemption to a partly owned parent, or basing it on a single condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Opale must consolidate, because a parent partly owned by other shareholders cannot benefit from the exemption.","es":""},"correct":false,"feedback":{"fr":"","en":"Ownership may be partial when the other owners are informed and do not object, as is the case here (IFRS 10, para. 4). Ruling out the exemption on that ground alone adds a requirement of total ownership that does not exist. Rule to remember: Partial ownership does not prevent the exemption if the other owners are informed and do not object (IFRS 10, para. 4).","es":""}},{"id":"B","text":{"fr":"","en":"Opale must consolidate, because holding subsidiaries requires consolidated statements whatever the exemption conditions.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding subsidiaries is precisely the situation addressed: the exemption relieves a parent that meets all the conditions of paragraph 4(a) (IFRS 10, para. 4). Concluding that consolidation is required ignores the existence of the exemption. Rule to remember: Holding subsidiaries does not require consolidation when all the exemption conditions are met (IFRS 10, para. 4).","es":""}},{"id":"C","text":{"fr":"","en":"Opale must consolidate, because the information given to the other shareholders must take the form of their written agreement.","es":""},"correct":false,"feedback":{"fr":"","en":"It is enough that the other owners are informed and do not object; the condition does not call for written agreement (IFRS 10, para. 4). Adding that formality would wrongly deny the exemption to a parent that qualifies. Rule to remember: The other owners must be informed and not object, with no written agreement required (IFRS 10, para. 4).","es":""}},{"id":"D","text":{"fr":"","en":"Opale meets all the exemption conditions: it is not required to present consolidated financial statements.","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS10.000005","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS10.000002","tested_point":"VG.IFRS10.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"For an investor to control an investee, three elements must all be present: power over the investee, exposure or rights to variable returns, and the ability to use its power to affect the amount of those returns.","es":""},"explanation":{"fr":"","en":"Control rests on three cumulative elements: power over the investee, exposure or rights to variable returns, and the ability to use power to affect the amount of those returns (IFRS 10, para. 7). Trap: Concluding that control exists as soon as one element is present. Rule to remember: The three elements of control must all be present (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Concluding to control on the basis of one element, for example exposure to returns.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS10.000006","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS10.000006","tested_point":"QST.IFRS10.000006","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"A colleague writes: \"Cèdre SA receives dividends that vary with the profit of Lierre SA; it is therefore exposed to variable returns and controls Lierre SA.\" What is wrong with this reasoning?","es":""},"explanation":{"fr":"","en":"Control requires three elements together: power, exposure or rights to variable returns, and the ability to use power to affect those returns (IFRS 10, para. 7). The colleague establishes only the second one: variable dividends. Trap: Taking exposure to returns as proof of control. Rule to remember: Exposure to returns is not enough; the three elements must all be present (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Confusing exposure to variable returns with control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It concludes that control exists from one element, exposure to returns, without establishing power or the ability to use that power to affect the returns.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It wrongly holds that two elements out of three are enough: control exists once power and exposure to returns coexist, with no examination of their link.","es":""},"correct":false,"feedback":{"fr":"","en":"The ability to use power to affect the amount of the returns is a separate element, to be met in addition to power and returns (IFRS 10, para. 7). Two elements are therefore not enough. Rule to remember: All three elements must be present to conclude on control (IFRS 10, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"It adds an essential fourth element, holding the majority of the investee's capital, which the colleague's reasoning has not checked.","es":""},"correct":false,"feedback":{"fr":"","en":"The three elements of control are power, variable returns and the ability to use power to affect them; majority of capital is not one of them (IFRS 10, para. 7). Adding that condition distorts the definition. Rule to remember: Control rests on three elements, with no majority-of-capital condition (IFRS 10, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"It examines the wrong thing: exposure to variable returns is not among the elements to consider when concluding on control.","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure or rights to variable returns is precisely one of the three elements of control (IFRS 10, para. 7). The reasoning is wrong because it stops at that element, not because it examines it. Rule to remember: Exposure to returns is necessary but not sufficient to conclude on control (IFRS 10, para. 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000007","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"APPLICATION","context":"V1_VG.IFRS10.000002","tested_point":"VG.IFRS10.000002","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"Érable SA holds existing rights that give it the current ability to direct the relevant activities of Saule SA (case assumption). It receives dividends whose amount varies with Saule's profit, and it can use its rights to decide the level of those dividends (case data). What is concluded?","es":""},"explanation":{"fr":"","en":"Érable's existing rights give it power; it is exposed to variable dividends; it can use its rights to set their level: the three elements are present (IFRS 10, para. 7), so Érable controls Saule. The facts are case data, not a general rule. Trap: Adding a majority-of-capital condition or ranking the elements. Rule to remember: Control exists when power, variable returns and the link between them are all present (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Adding a capital condition or treating one element as incidental.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Érable SA does not control Saule SA: control also requires it to hold the majority of Saule's capital.","es":""},"correct":false,"feedback":{"fr":"","en":"The three elements of control include no majority-of-capital condition: power, variable returns and the ability to use power to affect them (IFRS 10, para. 7). Here, the facts given establish all of them. Rule to remember: Control is shown by the three elements, with no capital threshold (IFRS 10, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"Érable SA does not control Saule SA: variable dividends are not an element of control.","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure or rights to variable returns is one of the three elements of control (IFRS 10, para. 7). Dividends that vary with the entity's profit are an example in this case, and nothing justifies disregarding them. Rule to remember: Variable returns are an element of control (IFRS 10, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"Érable SA controls Saule SA: the three elements of control are present.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Érable SA controls Saule SA: exposure to returns establishes control, the assessment of power being incidental.","es":""},"correct":false,"feedback":{"fr":"","en":"The conclusion matches the right answer, but the reasoning is wrong: none of the three elements is incidental, and all must be present (IFRS 10, para. 7). An investor exposed to returns without power does not control. Rule to remember: The three elements rank equally and are all necessary (IFRS 10, para. 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000008","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.REASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000008","tested_point":"QST.IFRS10.000008","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-reassess"},"references":["IFRS 10 §8","IFRS 10"],"exercise":{"prompt":{"fr":"","en":"Delta SA controls Sigma SA. Sigma breaches a covenant with its bank, which makes exercisable certain rights of the bank that are designed to protect its interests as lender (case data). What must Delta SA do about its control of Sigma?","es":""},"explanation":{"fr":"","en":"The assessment of control is continuous: when facts and circumstances indicate changes in one or more of the three elements, the investor reassesses (IFRS 10, para. 8). The Interpretations Committee noted in 2013 that the reassessment may or may not change the conclusion, and that a breach making protective rights exercisable is such a change in facts. Trap: Excluding protective rights from reassessment or inferring automatic loss of control. Rule to remember: A change in facts requires reassessing control, without presuming the outcome (IFRS 10, para. 8).","es":""},"common_error":{"fr":"","en":"Believing control is assessed only at acquisition or at the reporting date, or that protective rights escape reassessment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reassess nothing, because protective rights are excluded from the requirement to reassess control.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 10 excludes no right from the requirement to reassess control, as the Interpretations Committee noted in 2013 (IFRS 10, para. 8). A breach that makes protective rights exercisable is a change in facts. Rule to remember: No right is excluded from the reassessment of control (IFRS 10, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"Stop consolidating Sigma immediately, the breach causing loss of control.","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment may or may not change the conclusion (Committee decision of 2013; IFRS 10, para. 8): the breach requires control to be examined again, not treated as lost automatically. Deciding in advance to deconsolidate would be a conclusion without analysis. Rule to remember: Reassessing does not mean concluding that control is lost (IFRS 10, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"Reassess whether it still controls Sigma, the reassessment possibly changing its conclusion or not.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Wait for the next annual reporting date to resume the assessment of control.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment of control is continuous: the investor reassesses when facts and circumstances indicate changes in one of the three elements (IFRS 10, para. 8). Waiting for the reporting date would delay an analysis that the change in facts requires. Rule to remember: Reassessment follows the change in facts, not the reporting calendar (IFRS 10, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000010","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000010","tested_point":"QST.IFRS10.000010","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-rights"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"The intention of management to steer the investee is enough to give the investor power, even where there are no existing rights.","es":""},"explanation":{"fr":"","en":"Power arises from existing rights that give the investor the current ability to direct the relevant activities of the investee (IFRS 10, para. 10). A mere intention of management is not a right. Trap: Confusing management's intention or de facto influence with an existing right. Rule to remember: No existing rights, no power (IFRS 10, para. 10).","es":""},"common_error":{"fr":"","en":"Taking management's intention or influence for an existing right.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000011","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS","IFRS10.CONTROL.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000011","tested_point":"QST.IFRS10.000011","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §10","IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"What does the power of an investor over an investee rest on?","es":""},"explanation":{"fr":"","en":"Power arises from existing rights that give the investor the current ability to direct the relevant activities, that is, those that significantly affect the returns of the investee (IFRS 10, para. 10). Trap: Taking exposure to returns, de facto influence or intention for a right. Rule to remember: Power results from existing rights and a current ability (IFRS 10, para. 10).","es":""},"common_error":{"fr":"","en":"Confusing existing rights, exposure to returns and de facto influence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Existing rights that give it the current ability to direct the relevant activities of the investee.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Its exposure to significant variable returns, which naturally gives it mastery of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure to variable returns is another element of control, distinct from power (IFRS 10, para. 7); it does not say who holds rights over the relevant activities. Rule to remember: Power is shown by existing rights, not by the size of the returns (IFRS 10, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"The influence its managers exercise in practice within the entity, notably at board meetings, independently of the rights it holds.","es":""},"correct":false,"feedback":{"fr":"","en":"The de facto influence of managers, without an existing right, does not confer power: power arises from rights giving the current ability to direct the relevant activities (IFRS 10, para. 10). Rule to remember: Influence without rights is not power (IFRS 10, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"The stated intention of its managers to steer the relevant activities of the investee in the future.","es":""},"correct":false,"feedback":{"fr":"","en":"Power requires a current ability, based on existing rights (IFRS 10, para. 10); a forward-looking intention is not a right. This reasoning would give power to whoever announces plans. Rule to remember: Power is current and based on rights, not on intentions (IFRS 10, para. 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000012","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.EXISTING_RIGHTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000012","tested_point":"QST.IFRS10.000012","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-rights"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"Under a shareholders' agreement, Orme SA holds the currently exercisable right to appoint the majority of the directors of Hêtre SA, who decide the relevant activities. Frêne SA, a minority shareholder, steers the discussions of the meetings in practice thanks to the strong personality of its chief executive, without holding any particular right. Case convention: Orme's rights are exercisable in practice. Which of the two companies holds power over Hêtre?","es":""},"explanation":{"fr":"","en":"Orme holds existing rights (appointing the majority of the board, which decides the relevant activities) and, by case convention, they are exercisable: it has the current ability to direct those activities, hence power (IFRS 10, para. 10). Frêne has only de facto influence, with no right. The other elements of control remain to be examined separately. Trap: Confusing influence with an existing right. Rule to remember: Power arises from existing rights, not from de facto influence (IFRS 10, para. 10).","es":""},"common_error":{"fr":"","en":"Giving power to whoever dominates the discussions rather than to whoever holds the rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Frêne SA, because it steers in practice the decisions taken at Hêtre's board meetings.","es":""},"correct":false,"feedback":{"fr":"","en":"Steering discussions is not holding rights: power arises from existing rights, which Frêne lacks (IFRS 10, para. 10). Reasoning on practical influence takes a personality effect for a legal ability to direct. Rule to remember: Power rests on rights, not on the ascendancy of an executive (IFRS 10, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"Frêne SA, because the influence of its chief executive over the directors amounts to equivalent de facto power.","es":""},"correct":false,"feedback":{"fr":"","en":"Influence over directors does not replace an existing right: only a right gives the current ability to direct the relevant activities (IFRS 10, para. 10). Here, Orme appoints the majority of the board. Rule to remember: De facto influence is not power without an existing right (IFRS 10, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"Both together, because power requires the investor to have both rights and influence in practice.","es":""},"correct":false,"feedback":{"fr":"","en":"The text refers to existing rights giving the current ability to direct the relevant activities; it adds no requirement of influence in practice (IFRS 10, para. 10). Orme meets the condition set. Rule to remember: Existing rights are enough to establish power, with no additional influence condition (IFRS 10, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"Orme SA, because its existing rights give it the current ability to direct the relevant activities.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000013","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.RELEVANT_ACTIVITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000013","tested_point":"QST.IFRS10.000013","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-activities"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"In the analysis of power, what is meant by the \"relevant activities\" of an investee?","es":""},"explanation":{"fr":"","en":"Relevant activities are those that significantly affect the returns of the investee; power is the current ability to direct them (IFRS 10, para. 10). Trap: Treating any administrative activity as relevant even when it has no significant effect on returns. Rule to remember: An activity is relevant because of its significant effect on returns (IFRS 10, para. 10).","es":""},"common_error":{"fr":"","en":"Treating every administrative activity as a relevant activity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity's routine management activities, such as bookkeeping and secretarial work.","es":""},"correct":false,"feedback":{"fr":"","en":"An administrative activity is relevant only if it significantly affects the returns; the criterion is that effect, not the routine nature of the task (IFRS 10, para. 10). Rule to remember: Significant effect on the returns defines the relevant activity (IFRS 10, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"The activities that significantly affect the returns of the investee.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The activities that generate its revenue, whatever their effect on its returns.","es":""},"correct":false,"feedback":{"fr":"","en":"An activity that produces revenue is relevant only if it significantly affects the returns (IFRS 10, para. 10). The criterion is the effect on returns, not the source of revenue. Rule to remember: A relevant activity is one that weighs on the returns (IFRS 10, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"The activities that its managers describe as strategic in their multi-year business plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The label given by managers does not make an activity relevant: it is defined by its significant effect on the returns (IFRS 10, para. 10). A plan may call an activity strategic when it has no significant effect. Rule to remember: The criterion is the effect on returns, not the internal description (IFRS 10, para. 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000014","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.RELEVANT_ACTIVITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000014","tested_point":"QST.IFRS10.000014","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000003","section_id":"rule-activities"},"references":["IFRS 10 §10"],"exercise":{"prompt":{"fr":"","en":"Which statements about power and relevant activities are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Relevant activities are those that significantly affect returns; power arises from existing rights giving the current ability to direct them (IFRS 10, para. 10); protective rights alone do not confer it, as the standard states elsewhere. Trap: Listing every administrative transaction among the relevant activities, or inferring power from an intention. Rule to remember: Relevance = significant effect on returns; power = existing rights (IFRS 10, para. 10).","es":""},"common_error":{"fr":"","en":"Treating administrative transactions as relevant or basing power on an intention.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Power arises from existing rights that give the current ability to direct the relevant activities.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The routine administrative transactions of an entity are among its relevant activities.","es":""},"correct":false,"feedback":{"fr":"","en":"Routine administrative transactions are relevant only if they significantly affect the returns (IFRS 10, para. 10). Listing them automatically among the relevant activities ignores that criterion. Rule to remember: A routine or administrative nature does not make an activity relevant (IFRS 10, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"Power is inferred from the intention of the investor's management to steer the investee.","es":""},"correct":false,"feedback":{"fr":"","en":"An intention is not a right: power arises from existing rights giving a current ability (IFRS 10, para. 10). Inferring power from an intention would recognise control on the basis of plans alone. Rule to remember: Power rests on existing rights, not on intentions (IFRS 10, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"Relevant activities are those that significantly affect the returns of the investee.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Protective rights alone do not confer power over the investee.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000016","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.SUBSTANTIVE_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000016","tested_point":"QST.IFRS10.000016","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-substantive"},"references":["IFRS 10 §B22"],"exercise":{"prompt":{"fr":"","en":"To confer power, a right must be substantive: its holder must have the practical ability to exercise it.","es":""},"explanation":{"fr":"","en":"To confer power, rights must be substantive: their holder must have the practical ability to exercise them (IFRS 10, para. B22). Trap: Relying on a right that exists legally but cannot be exercised in practice. Rule to remember: A right confers power if it can be exercised in practice (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Relying on a right that exists legally but that its holder cannot exercise in practice.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000017","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.SUBSTANTIVE_RIGHTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000017","tested_point":"QST.IFRS10.000017","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-substantive"},"references":["IFRS 10 §B22"],"exercise":{"prompt":{"fr":"","en":"Cèdre SA holds the right to approve Lierre SA's business plan. Under the agreement, this right can be exercised only after 18 months, whereas the decisions on Lierre's relevant activities are taken in the meantime (case data). What is concluded about this right?","es":""},"explanation":{"fr":"","en":"A right is substantive if its holder has the practical ability to exercise it, which generally requires it to be currently exercisable, or at least exercisable when decisions on the relevant activities are taken (IFRS 10, para. B22). Cèdre's right will be so only after 18 months, case data: it does not confer power over the decisions taken before then. Trap: Judging a right by its legal existence. Rule to remember: The right must be exercisable when decisions are taken (IFRS 10, para. B22).","es":""},"common_error":{"fr":"","en":"Relying on a right that exists in a contract but is exercisable too late.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is substantive because it exists legally in the agreement, which is enough to confer power.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal existence is not enough: the holder must have the practical ability to exercise the right (IFRS 10, para. B22). Here, the right will be exercisable only after the decisions. Rule to remember: A legally existing right that is not exercisable when decisions are taken is not substantive (IFRS 10, para. B22).","es":""}},{"id":"B","text":{"fr":"","en":"It is substantive because Cèdre derives an economic benefit from it, whenever it may be exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"Benefit to the holder is one of the factors that condition the exercise of a right; it does not remove the need to assess whether the right is exercisable when decisions are taken (IFRS 10, para. B22). Rule to remember: A benefit does not make a right substantive if it is exercisable too late (IFRS 10, para. B22).","es":""}},{"id":"C","text":{"fr":"","en":"It is substantive, the exercise delay being irrelevant as long as the right is in a written contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The delay matters: a right must be currently exercisable, or at least exercisable when decisions on the relevant activities are taken (IFRS 10, para. B22). A written clause does not make a right exercisable earlier. Rule to remember: The time of exercise is decisive in judging whether a right is substantive (IFRS 10, para. B22).","es":""}},{"id":"D","text":{"fr":"","en":"It is not substantive until it is exercisable when decisions are taken: it does not confer power.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000019","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.PROTECTIVE_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000019","tested_point":"QST.IFRS10.000019","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-protective"},"references":["IFRS 10 §B26"],"exercise":{"prompt":{"fr":"","en":"What is the function of a protective right held by an investor in an entity?","es":""},"explanation":{"fr":"","en":"Protective rights are designed to protect the interest of their holder without giving it power over the entity (fundamental changes, exceptional circumstances); they do not allow control of the relevant activities (IFRS 10, para. B26). Trap: Considering that a veto right over fundamental changes gives control of the relevant activities. Rule to remember: A protective right protects; it does not give power (IFRS 10, para. B26).","es":""},"common_error":{"fr":"","en":"Confusing a protective veto right with a right that gives power.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To let its holder direct the entity's relevant activities day to day, in addition to its power to appoint the managers.","es":""},"correct":false,"feedback":{"fr":"","en":"Directing the relevant activities falls to the rights that confer power; protective rights do not allow control of those activities (IFRS 10, para. B26). Rule to remember: A protective right is not a right to direct (IFRS 10, para. B26).","es":""}},{"id":"B","text":{"fr":"","en":"To protect the interest of its holder, for example against fundamental changes, without giving it power over the entity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To guarantee its holder the majority of votes at meetings, so as to secure its control of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"A protective right guarantees no votes at meetings: it is designed to protect its holder's interest, without giving it power over the entity (IFRS 10, para. B26). Linking it to securing control reverses its function. Rule to remember: Protecting an interest is not power (IFRS 10, para. B26).","es":""}},{"id":"D","text":{"fr":"","en":"To give it power when combined with exposure to significant variable returns.","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure to returns is another element of control; it does not turn a protective right into power (IFRS 10, para. B26). Combining two elements does not create the third. Rule to remember: A protective right does not confer power, whatever the returns (IFRS 10, para. B26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000020","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.PROTECTIVE_RIGHTS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS10.000020","tested_point":"QST.IFRS10.000020","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-protective"},"references":["IFRS 10 §B26","IFRS 10"],"exercise":{"prompt":{"fr":"","en":"A colleague writes: \"The protective rights of Sigma SA's bank do not give it power; the fact that a breach makes them exercisable therefore calls for no reassessment of control of Sigma.\" What is wrong with this reasoning?","es":""},"explanation":{"fr":"","en":"Protective rights protect their holder's interest without giving it power (IFRS 10, para. B26); but, according to the Interpretations Committee decision of 2013, IFRS 10 excludes no right from the requirement to reassess: a breach that makes them exercisable is a change in facts, and the reassessment may or may not change the conclusion. Trap: Excluding protective rights from the reassessment. Rule to remember: Protective rights do not confer power, but their becoming exercisable may require reassessing control (IFRS 10, para. B26).","es":""},"common_error":{"fr":"","en":"Believing that rights without power are left out of the reassessment of control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is wrong about the nature of protective rights, which actually confer power over the relevant activities of the investee.","es":""},"correct":false,"feedback":{"fr":"","en":"Protective rights are designed to protect their holder's interest without giving it power (IFRS 10, para. B26); the flaw is not there, the first premise is correct. Rule to remember: Protective rights do not confer power, but their exercise may require a reassessment (IFRS 10, para. B26).","es":""}},{"id":"B","text":{"fr":"","en":"It omits that the reassessment leads to loss of control by the former investor in this situation.","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment may or may not change the conclusion: it does not automatically lead to loss of control (Committee decision of 2013; IFRS 10, para. B26). Presenting that loss as certain adds a conclusion the text does not set. Rule to remember: Reassessing is not concluding that control is lost (IFRS 10, para. B26).","es":""}},{"id":"C","text":{"fr":"","en":"It overlooks that a breach making protective rights exercisable is a change in facts that requires control to be reassessed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It confuses the reassessment with the first assessment of control, which must be made at each annual reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment is not an annual exercise: it is triggered by changes in facts, here the breach that makes rights exercisable (Committee decision of 2013; IFRS 10, para. B26). Rule to remember: It is the change in facts, not the reporting date, that triggers reassessment (IFRS 10, para. B26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000021","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.PROTECTIVE_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000021","tested_point":"QST.IFRS10.000021","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000004","section_id":"rule-protective"},"references":["IFRS 10 §B26"],"exercise":{"prompt":{"fr":"","en":"Which statements about protective rights are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Protective rights protect their holder's interest without giving it power and do not allow control of the relevant activities (IFRS 10, para. B26); a breach that makes them exercisable is a change in facts requiring control to be reassessed, according to the Interpretations Committee decision of 2013. Trap: Seeing control of the relevant activities in a protective veto, or excluding it from reassessment. Rule to remember: Protection is not power, but it does not escape reassessment (IFRS 10, para. B26).","es":""},"common_error":{"fr":"","en":"Confusing the protective veto with a right to direct, or excluding it from reassessment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are designed to protect their holder's interest without giving it power over the entity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They are left out of the reassessment of control because they do not confer power.","es":""},"correct":false,"feedback":{"fr":"","en":"No right is excluded from reassessment: a breach making protective rights exercisable is a change in facts (Committee decision of 2013; IFRS 10, para. B26). Setting them aside because they carry no power is an error. Rule to remember: Protective rights remain subject to reassessment (IFRS 10, para. B26).","es":""}},{"id":"C","text":{"fr":"","en":"They do not allow control of the entity's relevant activities.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A breach of covenant that makes them exercisable is a change requiring control to be reassessed.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A veto right over fundamental changes is enough to give control of the relevant activities.","es":""},"correct":false,"feedback":{"fr":"","en":"A veto over fundamental changes protects an interest; it does not direct the relevant activities (IFRS 10, para. B26). Seeing control in it confuses the ability to prevent a change with the ability to decide. Rule to remember: A protective veto does not give control of the relevant activities (IFRS 10, para. B26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000022","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.DE_FACTO"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000022","tested_point":"QST.IFRS10.000022","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-defacto"},"references":["IFRS 10 §B41","IFRS 10 §B42"],"exercise":{"prompt":{"fr":"","en":"Cèdre SA holds 40% of the voting rights of Lierre SA. The remaining 60% is spread among a very large number of holders, none holding more than 1%, and these holders have never voted together at previous meetings (case data). What can be concluded about Cèdre's power?","es":""},"explanation":{"fr":"","en":"An investor holding less than a majority of voting rights may have power if its rights give it the practical ability to direct the relevant activities unilaterally, which can happen when its holding is significantly larger than that of the others, given their dispersion (IFRS 10, paras. B41 and B42). Here, 40% against widely dispersed holders is a strong indication, to be confirmed by all the facts. Trap: Applying a fixed percentage threshold. Rule to remember: De facto power is assessed on size and dispersion, with no numerical threshold (IFRS 10, paras. B41 and B42).","es":""},"common_error":{"fr":"","en":"Applying a fixed percentage, for example 40%, as a rule of de facto control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cèdre may have power: a holding significantly larger than that of the others, given how dispersed they are, may give it the practical ability to direct unilaterally.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Cèdre cannot have power: without a majority of the voting rights no practical ability to direct unilaterally is conceivable, even if the other holders are widely dispersed.","es":""},"correct":false,"feedback":{"fr":"","en":"Power does not require a majority of voting rights: an investor holding fewer may have the practical ability to direct the relevant activities unilaterally (IFRS 10, paras. B41 and B42). Rule to remember: Holding less than a majority does not rule out power (IFRS 10, paras. B41 and B42).","es":""}},{"id":"C","text":{"fr":"","en":"Cèdre has power: a percentage of 40% is the threshold from which the practical ability to direct unilaterally is established for any investor.","es":""},"correct":false,"feedback":{"fr":"","en":"The text reasons in relative terms, a holding significantly larger than that of the others given their dispersion, and not by a single percentage valid for everyone (IFRS 10, paras. B41 and B42). Rule to remember: Power without a majority is assessed case by case, with no numerical threshold (IFRS 10, paras. B41 and B42).","es":""}},{"id":"D","text":{"fr":"","en":"Cèdre must wait for a concerted vote of the other holders before concluding: experience of a joint vote is needed to assess the practical ability to direct.","es":""},"correct":false,"feedback":{"fr":"","en":"The practical ability to direct unilaterally results from the size of the holding relative to the others and from their dispersion (IFRS 10, paras. B41 and B42); requiring a prior concerted vote adds a condition absent from the text. Rule to remember: The dispersion of the other holders can be enough to found the practical ability (IFRS 10, paras. B41 and B42).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000024","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.POTENTIAL_VOTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000024","tested_point":"QST.IFRS10.000024","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-potential"},"references":["IFRS 10 §B47"],"exercise":{"prompt":{"fr":"","en":"Potential voting rights, such as options, warrants or convertible instruments, enter the assessment of power whether or not they are substantive.","es":""},"explanation":{"fr":"","en":"Potential voting rights (options, warrants, convertible instruments) are taken into account in assessing power only if they are substantive (IFRS 10, para. B47); their mere existence is not enough. Trap: Counting every potential right as if it were exercised. Rule to remember: A potential voting right counts towards power if it is substantive (IFRS 10, para. B47).","es":""},"common_error":{"fr":"","en":"Counting all potential voting rights without examining whether they are substantive.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000025","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.POTENTIAL_VOTING"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000025","tested_point":"QST.IFRS10.000025","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-potential"},"references":["IFRS 10 §B47"],"exercise":{"prompt":{"fr":"","en":"Cèdre SA holds 30% of the voting rights of Lierre SA and a call option over a further 25% of rights, exercisable at any time at a price close to fair value. Case assumption: the option is substantive. How does this option enter the assessment of Cèdre's power?","es":""},"explanation":{"fr":"","en":"Potential voting rights (options, warrants, convertible instruments) are taken into account in assessing power only if they are substantive (IFRS 10, para. B47). As the case assumption states the option is substantive, Cèdre includes it in its analysis with its 30% of voting rights and the other rights. Trap: Counting or setting aside the option without examining whether it is substantive. Rule to remember: A substantive potential voting right is taken into account with the other rights (IFRS 10, para. B47).","es":""},"common_error":{"fr":"","en":"Counting all potential rights as exercised, or ignoring them until they are.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is taken into account with the other rights in assessing power, because it is substantive.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is set aside until exercised, the voting rights actually held being those that count towards power.","es":""},"correct":false,"feedback":{"fr":"","en":"A substantive potential voting right enters the assessment of power even before it is exercised (IFRS 10, para. B47). Ignoring it because it is not exercised understates Cèdre's power. Rule to remember: The criterion is the substantive nature, not actual exercise (IFRS 10, para. B47).","es":""}},{"id":"C","text":{"fr":"","en":"It is counted as if already exercised, with no need to examine whether it is substantive.","es":""},"correct":false,"feedback":{"fr":"","en":"Counting a right as if exercised without examination would overstate power: the right is taken into account only if it is substantive (IFRS 10, para. B47). Here the option is taken into account because the case assumption states that it is substantive, not automatically. Rule to remember: A potential right is judged before it is counted (IFRS 10, para. B47).","es":""}},{"id":"D","text":{"fr":"","en":"It is taken into account if Cèdre's management intends to exercise it, whatever its exercise conditions.","es":""},"correct":false,"feedback":{"fr":"","en":"Exercise conditions matter in judging whether a right is substantive (IFRS 10, para. B47); management's intention does not replace that examination. Rule to remember: Substantive nature depends on exercise conditions, not on intentions (IFRS 10, para. B47).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000026","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.STRUCTURED_ENTITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000026","tested_point":"QST.IFRS10.000026","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-structured"},"references":["IFRS 10 §B8"],"exercise":{"prompt":{"fr":"","en":"What characterises a structured entity in the analysis of control?","es":""},"explanation":{"fr":"","en":"A structured entity is designed so that voting rights or similar rights are not the dominant factor in deciding who controls it; for example, voting rights relate to administrative tasks only and the relevant activities are directed by contractual arrangements (IFRS 10, para. B8). Trap: Applying the majority-of-votes test to a structured entity. Rule to remember: In a structured entity, voting rights do not decide control (IFRS 10, para. B8).","es":""},"common_error":{"fr":"","en":"Applying the majority-of-voting-rights test to a structured entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is designed so that the majority of voting rights determines control, contractual arrangements playing a supporting role in directing the relevant activities of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: in a structured entity, voting rights or similar rights are not the dominant factor in deciding who controls it (IFRS 10, para. B8). Applying the majority-of-votes test to such an entity would be a misreading. Rule to remember: A structured entity is defined by voting rights not being decisive (IFRS 10, para. B8).","es":""}},{"id":"B","text":{"fr":"","en":"It is made up of several subsidiaries each with a distinct activity, whose returns are brought together in one consolidated group.","es":""},"correct":false,"feedback":{"fr":"","en":"The number of subsidiaries or the scope of consolidation does not define a structured entity; it is characterised by the design of its control, not by its composition (IFRS 10, para. B8). Rule to remember: A structured entity is recognised by the design of its control (IFRS 10, para. B8).","es":""}},{"id":"C","text":{"fr":"","en":"It is designed so that voting rights or similar rights are not the dominant factor in deciding who controls it, the relevant activities being directed, for example, by contractual arrangements.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is a small entity whose securities are held by a small number of investors related to one another.","es":""},"correct":false,"feedback":{"fr":"","en":"Size and number of investors do not characterise the structured entity; the criterion is that voting rights are not the dominant factor in deciding who controls it (IFRS 10, para. B8). Rule to remember: Neither size nor number of investors defines a structured entity (IFRS 10, para. B8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000027","standard_id":"IFRS10","concept_ids":["IFRS10.POWER.STRUCTURED_ENTITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000027","tested_point":"QST.IFRS10.000027","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000005","section_id":"rule-structured"},"references":["IFRS 10 §B51","IFRS 10 §B8"],"exercise":{"prompt":{"fr":"","en":"To establish who has power over a structured entity, what does the investor consider? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Power over a structured entity generally results from contractual arrangements rather than from voting rights; the investor considers the purpose and design of the entity, the risks it was designed to create and pass on, and its involvement in the design (IFRS 10, paras. B8 and B51). Trap: Applying the majority-of-votes test. Rule to remember: Power over a structured entity is established by analysing its design (IFRS 10, para. B51).","es":""},"common_error":{"fr":"","en":"Reasoning on the percentage of votes as for an ordinary entity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its own degree of involvement in the design of the entity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The percentage of voting rights it holds, assessed as for any other investee.","es":""},"correct":false,"feedback":{"fr":"","en":"Power over a structured entity generally results from contractual arrangements rather than from voting rights (IFRS 10, para. B51). Reasoning on the percentage of votes as for an ordinary entity applies an unsuitable test. Rule to remember: For a structured entity, the design and the arrangements are analysed, not the percentage of votes (IFRS 10, para. B51).","es":""}},{"id":"C","text":{"fr":"","en":"The risks the entity was designed to create and to pass on to the parties involved.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The amount of dividends paid by the entity in the previous year.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of past dividends is not among the factors the text uses to establish power: purpose, design, risks and the investor's involvement are considered (IFRS 10, para. B51). Rule to remember: Power is inferred from the design of the entity, not from its history of distributions (IFRS 10, para. B51).","es":""}},{"id":"E","text":{"fr":"","en":"The purpose and design of the entity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000028","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.VARIABLE_RETURNS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000028","tested_point":"QST.IFRS10.000028","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-returns"},"references":["IFRS 10 §15"],"exercise":{"prompt":{"fr":"","en":"The variable returns of an investor in an entity are limited to the dividends the entity pays to it.","es":""},"explanation":{"fr":"","en":"Variable returns are returns that have the potential to vary as a result of the performance of the investee; they may be positive, negative or both (IFRS 10, para. 15). Exposure to losses is therefore also a variable return, and dividends are not the only form. Trap: Reducing variable returns to dividends. Rule to remember: A variable return may be positive, negative or both (IFRS 10, para. 15).","es":""},"common_error":{"fr":"","en":"Limiting variable returns to dividends.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000029","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.VARIABLE_RETURNS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000029","tested_point":"QST.IFRS10.000029","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-returns"},"references":["IFRS 10 §15"],"exercise":{"prompt":{"fr":"","en":"Which statements about variable returns are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Variable returns have the potential to vary as a result of the investee's performance and may be positive, negative or both (IFRS 10, para. 15). Trap: Limiting variable returns to dividends or to positive returns. Rule to remember: A return is variable if it follows the entity's performance, whether positive or negative (IFRS 10, para. 15).","es":""},"common_error":{"fr":"","en":"Retaining only positive returns.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are returns that have the potential to vary as a result of the performance of the investee.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They may be negative, for example an exposure to the investee's losses.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Exposure to losses is not a variable return in the analysis of control.","es":""},"correct":false,"feedback":{"fr":"","en":"Variable returns may be positive, negative or both (IFRS 10, para. 15): an exposure to losses is an example. Leaving it out of the analysis would understate the investor's exposure. Rule to remember: Negative returns count as variable returns (IFRS 10, para. 15).","es":""}},{"id":"D","text":{"fr":"","en":"They are returns that do not depend on the performance of the investee.","es":""},"correct":false,"feedback":{"fr":"","en":"A variable return is defined precisely by its variability with the investee's performance (IFRS 10, para. 15). A return independent of that performance falls outside the notion. Rule to remember: Variability with performance characterises the variable return (IFRS 10, para. 15).","es":""}},{"id":"E","text":{"fr":"","en":"They may be positive, for example a dividend that rises with the entity's profit.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000030","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.VARIABLE_RETURNS","IFRS10.CONTROL.PRINCIPLE"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000030","tested_point":"QST.IFRS10.000030","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §15","IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"Saule SA holds 15% of the capital of Tilleul SA. It receives a dividend whose amount depends on Tilleul's profit, and it would suffer a loss on its holding if Tilleul recorded losses (case data). What can be said about Saule's returns in Tilleul?","es":""},"explanation":{"fr":"","en":"The dividend linked to profit and the possible loss on the holding are returns that have the potential to vary with the investee's performance, positive or negative (IFRS 10, para. 15). This exposure is only one of the three elements of control: power and the link would also have to be established (IFRS 10, para. 7). Trap: Limiting returns to dividends, or concluding to control on exposure alone. Rule to remember: Variable returns are positive or negative; their presence alone does not establish control (IFRS 10, para. 15).","es":""},"common_error":{"fr":"","en":"Reducing returns to the dividend, or seeing proof of control in them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Saule has no variable return in Tilleul, a dividend depending on profit not being a return for the purposes of the analysis of control.","es":""},"correct":false,"feedback":{"fr":"","en":"A dividend that depends on profit varies with the investee's performance: it is a variable return (IFRS 10, para. 15). Denying it would ignore an element of control. Rule to remember: A dividend linked to profit is a variable return (IFRS 10, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"Saule is exposed to variable returns, positive or negative, which are one element of control without being enough to conclude that Saule controls Tilleul.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Saule is exposed to variable returns, which by itself establishes that it controls Tilleul, whatever its rights.","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure to variable returns is one element of control; it is not enough, since power and the ability to use it to affect the returns are also needed (IFRS 10, para. 7). Rule to remember: Exposure to returns does not suffice to establish control (IFRS 10, para. 15).","es":""}},{"id":"D","text":{"fr":"","en":"Saule is exposed to variable returns through the dividend, but the possible loss on the holding is not one.","es":""},"correct":false,"feedback":{"fr":"","en":"Variable returns may be positive, negative or both (IFRS 10, para. 15): the possible loss on the holding is one. Retaining only the dividend understates Saule's exposure. Rule to remember: Negative returns count as well (IFRS 10, para. 15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000031","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.LINK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000031","tested_point":"QST.IFRS10.000031","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-link"},"references":["IFRS 10 §17"],"exercise":{"prompt":{"fr":"","en":"In the analysis of control, what does the link between power and returns mean?","es":""},"explanation":{"fr":"","en":"The link between power and returns means that the investor controls the entity if it can use its power to affect the amount of its own returns, and not merely if it holds power and returns separately (IFRS 10, para. 17). Trap: Treating power and exposure to returns as sufficient when they belong to two separate parties. Rule to remember: Control requires power to be usable to affect the investor's own returns (IFRS 10, para. 17).","es":""},"common_error":{"fr":"","en":"Treating power and exposure to returns as sufficient when they are held by two parties.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The investor controls the entity as soon as power and variable returns exist, even if they are held by two separate parties with no connection between them.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding power and returns separately is not enough: control requires the investor to be able to use its power to affect the amount of its own returns (IFRS 10, para. 17). Rule to remember: Power and returns must be linked in the same party (IFRS 10, para. 17).","es":""}},{"id":"B","text":{"fr":"","en":"The link means that the investor and the investee belong to the same economic group, which is enough to establish control of one over the other.","es":""},"correct":false,"feedback":{"fr":"","en":"Belonging to the same economic group does not establish control: the question is whether the investor can use its power to affect its own returns (IFRS 10, para. 17). Rule to remember: The link is measured by the ability to affect one's own returns (IFRS 10, para. 17).","es":""}},{"id":"C","text":{"fr":"","en":"The link is established when the investor bears the investee's losses, even if it has no power over its relevant activities.","es":""},"correct":false,"feedback":{"fr":"","en":"Bearing losses is exposure to returns, another element of control; without power over the relevant activities the link does not exist (IFRS 10, para. 17). Rule to remember: Exposure to returns does not replace the link with power (IFRS 10, para. 17).","es":""}},{"id":"D","text":{"fr":"","en":"The investor controls the entity if it can use its power to affect the amount of its own returns.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000032","standard_id":"IFRS10","concept_ids":["IFRS10.RETURNS.LINK"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000032","tested_point":"QST.IFRS10.000032","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000006","section_id":"rule-link"},"references":["IFRS 10 §17"],"exercise":{"prompt":{"fr":"","en":"Alpha SA holds all the decision rights over the relevant activities of Delta SA. Delta's variable returns, positive and negative, go to Beta SA, a separate party with no power over Delta, and Alpha receives none of them (case data). Does Alpha control Delta?","es":""},"explanation":{"fr":"","en":"Alpha has the power but derives no return from Delta; Beta receives the returns without power. Control requires the investor to be able to use its power to affect the amount of its own returns, and not merely to hold power and returns separately (IFRS 10, para. 17): Alpha does not control Delta. The facts are case data. Trap: Settling for power alone. Rule to remember: Without a link between power and its own returns, there is no control (IFRS 10, para. 17).","es":""},"common_error":{"fr":"","en":"Concluding to control on the holding of power alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: power over the relevant activities is enough to establish control, whether the returns go to Alpha or to another party that has no power.","es":""},"correct":false,"feedback":{"fr":"","en":"Power alone is not enough: the investor controls if it can use its power to affect the amount of its own returns, not by holding power and returns separately (IFRS 10, para. 17). Rule to remember: Power without returns of its own does not establish control (IFRS 10, para. 17).","es":""}},{"id":"B","text":{"fr":"","en":"No: Alpha cannot use its power to affect the amount of its own returns; power and returns are held separately.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes: control is shared between Alpha and Beta, which together combine power and returns, establishing the control of each over Delta.","es":""},"correct":false,"feedback":{"fr":"","en":"Two parties together combining power and returns does not create control for each: the text refers to the investor's ability to affect its own returns (IFRS 10, para. 17). Alpha has no returns, Beta has no power. Rule to remember: The link is assessed party by party (IFRS 10, para. 17).","es":""}},{"id":"D","text":{"fr":"","en":"Yes: Beta, which receives the returns, is deemed to act on behalf of Alpha, so the link between Alpha's power and returns is established.","es":""},"correct":false,"feedback":{"fr":"","en":"The case does not say Beta acts for Alpha, and nothing allows that to be presumed; yet the link requires Alpha to affect its own returns (IFRS 10, para. 17). Rule to remember: The link is not deduced from a presumption of agency that is not given (IFRS 10, para. 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000034","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.PRINCIPAL_VS_AGENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000034","tested_point":"QST.IFRS10.000034","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-agent"},"references":["IFRS 10 §B58"],"exercise":{"prompt":{"fr":"","en":"In the analysis of control, what characterises an agent as opposed to a principal?","es":""},"explanation":{"fr":"","en":"A decision maker assessing whether it controls first determines whether it is a principal or an agent; an agent, acting on behalf of and for the benefit of other parties, does not control the investee when it exercises the decision-making rights delegated to it (IFRS 10, para. B58). Trap: Consolidating a managed entity merely because the manager holds the decision-making power. Rule to remember: An agent does not control the entity it manages on behalf of others (IFRS 10, para. B58).","es":""},"common_error":{"fr":"","en":"Consolidating a managed entity merely because the manager holds the decision-making power.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The agent is the decision maker acting on its own behalf, which consolidates the entity whenever it holds decision-making power over its relevant activities.","es":""},"correct":false,"feedback":{"fr":"","en":"A decision maker acting on its own behalf is a principal; that is the opposite of an agent, which acts on behalf of and for the benefit of other parties (IFRS 10, para. B58). Rule to remember: An agent does not consolidate the entity it manages for others (IFRS 10, para. B58).","es":""}},{"id":"B","text":{"fr":"","en":"The agent is the party that delegates its decision-making rights to a third party, which then becomes the principal and consolidates the managed entity on the first party's behalf.","es":""},"correct":false,"feedback":{"fr":"","en":"The roles are reversed: whoever exercises the delegated decision-making rights is the decision maker, an agent if it acts on behalf of other parties, and it does not control the entity in that capacity (IFRS 10, para. B58). Rule to remember: The delegate of decision-making rights is not thereby a principal (IFRS 10, para. B58).","es":""}},{"id":"C","text":{"fr":"","en":"The agent is the decision maker whose authority over the entity is the widest; it controls the investee by reason of the extent of that authority.","es":""},"correct":false,"feedback":{"fr":"","en":"The extent of decision-making authority does not by itself make a principal: an agent exercises delegated decision-making rights without controlling the entity (IFRS 10, para. B58). Rule to remember: Wide decision-making authority is not enough to conclude on control (IFRS 10, para. B58).","es":""}},{"id":"D","text":{"fr":"","en":"The agent acts on behalf of and for the benefit of other parties, and does not control the investee when it exercises the decision-making rights delegated to it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000035","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.PRINCIPAL_VS_AGENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000035","tested_point":"QST.IFRS10.000035","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-agent"},"references":["IFRS 10 §B58"],"exercise":{"prompt":{"fr":"","en":"GestionPlus SA manages the Horizon fund on behalf of and for the benefit of the fund's investors, exercising decision-making rights delegated to it. Case convention: GestionPlus acts as an agent. Must GestionPlus consolidate Horizon?","es":""},"explanation":{"fr":"","en":"By case convention, GestionPlus is an agent: it acts on behalf of and for the benefit of Horizon's investors. An agent does not control the investee when it exercises the decision-making rights delegated to it (IFRS 10, para. B58); it therefore does not consolidate Horizon. The principal / agent analysis itself is a judgement that precedes this conclusion. Trap: Consolidating because the manager decides. Rule to remember: An agent does not control the entity it manages for others (IFRS 10, para. B58).","es":""},"common_error":{"fr":"","en":"Consolidating a managed entity merely because the manager holds the decision-making power.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: as an agent, it does not control Horizon when it exercises the decision-making rights delegated to it.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: it holds decision-making power over Horizon's relevant activities, which is enough to make it consolidate the fund it manages.","es":""},"correct":false,"feedback":{"fr":"","en":"Delegated decision-making power does not lead to consolidation: the agent does not control the entity when it exercises that power for others (IFRS 10, para. B58). Rule to remember: Holding decision-making power does not make an agent a controlling party (IFRS 10, para. B58).","es":""}},{"id":"C","text":{"fr":"","en":"Yes: as soon as it receives a fee for its services, it acts on its own behalf and becomes the principal of the Horizon fund.","es":""},"correct":false,"feedback":{"fr":"","en":"The case convention states that GestionPlus is an agent, that is, it acts on behalf of others (IFRS 10, para. B58); the fee received does not turn it into a principal. Rule to remember: Agent status as stated rules out consolidation (IFRS 10, para. B58).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, for the fraction of the fund's returns that accrues to it: it consolidates that share of the fund, line by line, despite being an agent.","es":""},"correct":false,"feedback":{"fr":"","en":"The text provides for no partial consolidation for an agent: it does not control the entity when it exercises its delegated decision-making rights (IFRS 10, para. B58). Rule to remember: An agent does not consolidate, either in full or for a fraction (IFRS 10, para. B58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000036","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.PRINCIPAL_VS_AGENT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS10.000036","tested_point":"QST.IFRS10.000036","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-agent"},"references":["IFRS 10 §B58"],"exercise":{"prompt":{"fr":"","en":"Among these four statements about a decision maker assessing whether it controls an entity, which one is wrong?","es":""},"explanation":{"fr":"","en":"A decision maker assessing whether it controls first determines whether it is a principal or an agent; the size of its returns is not the preliminary step. An agent acts on behalf of and for the benefit of other parties and does not control the entity when it exercises the decision-making rights delegated to it (IFRS 10, para. B58). Trap: Reversing the order of the analysis. Rule to remember: The role of principal or agent is characterised first (IFRS 10, para. B58).","es":""},"common_error":{"fr":"","en":"Assessing returns before asking whether the decision maker is an agent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A decision maker assessing whether it controls first determines whether it acts as a principal or as an agent.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct, so it is not the error: a decision maker assessing whether it controls first determines whether it is a principal or an agent (IFRS 10, para. B58). Rule to remember: The first step is to characterise one's role (IFRS 10, para. B58).","es":""}},{"id":"B","text":{"fr":"","en":"An agent acts on behalf of and for the benefit of other parties.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct, so it is not the error: an agent acts on behalf of and for the benefit of other parties (IFRS 10, para. B58). Rule to remember: An agent acts for others (IFRS 10, para. B58).","es":""}},{"id":"C","text":{"fr":"","en":"The decision maker first assesses its returns; it examines whether it is an agent only if they are small.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An agent that exercises the decision-making rights delegated to it does not control the investee.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct, so it is not the error: an agent does not control the investee when it exercises the decision-making rights delegated to it (IFRS 10, para. B58). Rule to remember: An agent does not consolidate the entity it manages for others (IFRS 10, para. B58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000037","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.FACTORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000037","tested_point":"QST.IFRS10.000037","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-factors"},"references":["IFRS 10 §B60"],"exercise":{"prompt":{"fr":"","en":"What does a decision maker take into account to determine whether it is an agent? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"To determine whether it is an agent, the decision maker considers the scope of its decision-making authority, the rights held by other parties, its remuneration and its exposure to variability of returns from other interests; these factors are weighted according to the facts and circumstances (IFRS 10, para. B60). Trap: Treating a single factor as decisive. Rule to remember: Four factors are weighed together (IFRS 10, para. B60).","es":""},"common_error":{"fr":"","en":"Treating a single factor, for example remuneration, as decisive.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The scope of its decision-making authority over the investee.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The rights held by other parties.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The legal form chosen for the investment vehicle it manages.","es":""},"correct":false,"feedback":{"fr":"","en":"The legal form of the vehicle is not among the factors retained: the decision maker considers the scope of its authority, the rights of others, its remuneration and its exposure to other interests (IFRS 10, para. B60). Rule to remember: The four factors concern the decision maker's role and interests, not the form of the vehicle (IFRS 10, para. B60).","es":""}},{"id":"D","text":{"fr":"","en":"Its remuneration.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The manager's reputation among investors in the market.","es":""},"correct":false,"feedback":{"fr":"","en":"The manager's reputation is not a factor in the principal / agent analysis: the decision maker considers the scope of its authority, the rights of others, its remuneration and its exposure to other interests (IFRS 10, para. B60). Rule to remember: The analysis rests on four factors, none of which is reputation (IFRS 10, para. B60).","es":""}},{"id":"F","text":{"fr":"","en":"Its exposure to variability of returns from other interests it holds in the entity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000039","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.REMOVAL_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000039","tested_point":"QST.IFRS10.000039","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-removal"},"references":["IFRS 10 §B65"],"exercise":{"prompt":{"fr":"","en":"Substantive removal rights that a single party can exercise without cause can be enough to conclude that the decision maker is an agent.","es":""},"explanation":{"fr":"","en":"Substantive removal rights exercisable by a single party without cause can be enough to conclude that the decision maker is an agent (IFRS 10, para. B65). Trap: Ignoring removal rights exercisable by a single investor. Rule to remember: A substantive removal right, exercisable by one party without cause, weighs heavily towards agent status (IFRS 10, para. B65).","es":""},"common_error":{"fr":"","en":"Ignoring removal rights exercisable by a single investor.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000040","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.REMOVAL_RIGHTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000040","tested_point":"QST.IFRS10.000040","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-removal"},"references":["IFRS 10 §B65"],"exercise":{"prompt":{"fr":"","en":"Sextant SA manages the Zénith fund. One investor, Orme SA, can remove Sextant at any time, without having to give a reason and without the agreement of any other party. Case assumption: this right is substantive. What is the effect of this right in the principal / agent analysis of Sextant?","es":""},"explanation":{"fr":"","en":"Orme can remove Sextant at any time, without cause, without the agreement of any other party, and the right is substantive by case assumption: such rights, exercisable by a single party without cause, can be enough to conclude that the decision maker is an agent (IFRS 10, para. B65). The full conclusion takes the other factors into account. Trap: Ignoring removal rights exercisable by a single investor. Rule to remember: A substantive, individual removal right weighs heavily towards agent status (IFRS 10, para. B65).","es":""},"common_error":{"fr":"","en":"Neglecting a single investor's removal right in the analysis of the manager.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It has no effect on the analysis: Sextant's decision-making power over the relevant activities establishes that it is a principal.","es":""},"correct":false,"feedback":{"fr":"","en":"Rights held by other parties can limit the decision maker's decision-making power, to the point of making it an agent (IFRS 10, para. B65). Ignoring them in favour of decision-making power alone distorts the analysis. Rule to remember: Others' removal rights enter the analysis (IFRS 10, para. B65).","es":""}},{"id":"B","text":{"fr":"","en":"It counts if a majority of investors must act together to remove Sextant, an individual right being set aside.","es":""},"correct":false,"feedback":{"fr":"","en":"It is not a collective-action requirement that matters: the text refers to rights exercisable by a single party without cause (IFRS 10, para. B65). Setting aside the individual right ignores the precise case where it is enough. Rule to remember: A right exercisable by a single party can be enough (IFRS 10, para. B65).","es":""}},{"id":"C","text":{"fr":"","en":"It can be enough to conclude that Sextant is an agent, since a single party can remove it without cause.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It presupposes that Sextant has committed a fault: a removal right exercisable without cause does not limit its decision-making power.","es":""},"correct":false,"feedback":{"fr":"","en":"The text refers to rights exercisable without cause: no fault of the decision maker is required (IFRS 10, para. B65). Requiring a fault would empty the criterion of its scope. Rule to remember: A removal right without cause limits decision-making power (IFRS 10, para. B65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000041","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.REMUNERATION_EXPOSURE","IFRS10.AGENCY.FACTORS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS10.000041","tested_point":"QST.IFRS10.000041","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-factors"},"references":["IFRS 10 §B72","IFRS 10 §B60"],"exercise":{"prompt":{"fr":"","en":"A colleague concludes: \"The manager's exposure to the fund's returns is below the percentage set by the standard; it is therefore an agent.\" What is wrong with this reasoning?","es":""},"explanation":{"fr":"","en":"The application examples on fund managers illustrate the principal / agent judgement; numerical exposure thresholds are sometimes applied in practice as rules, but they do not appear in the standard as thresholds and are not taught as such (IFRS 10, para. B72). Trap: Applying a fixed exposure percentage as a rule of the standard. Rule to remember: The principal / agent judgement has no numerical threshold in the standard (IFRS 10, para. B72).","es":""},"common_error":{"fr":"","en":"Applying a fixed exposure percentage as a rule of the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It treats as a rule of the standard an exposure percentage that the standard does not set; such numerical thresholds are only practices that are sometimes applied.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It overlooks that the manager's remuneration, and not its exposure, determines whether it is an agent, exposure to other interests not forming part of the analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure to variability of returns from other interests is one of the factors in the analysis, with remuneration, scope of authority and the rights of others (IFRS 10, para. B60). It is not set aside. Rule to remember: Remuneration and exposure are examined together (IFRS 10, para. B60).","es":""}},{"id":"C","text":{"fr":"","en":"It confuses agent and principal: a manager whose exposure to returns is low is in fact a principal that controls the fund.","es":""},"correct":false,"feedback":{"fr":"","en":"Low exposure does not establish a principal role: the role is judged on all the factors and not on a percentage, the application examples illustrating a judgement (IFRS 10, para. B72). Rule to remember: Principal or agent status results from an overall judgement (IFRS 10, para. B72).","es":""}},{"id":"D","text":{"fr":"","en":"It applies a correct numerical rule but must also check that the fund is listed, because the percentage set by the standard applies to listed funds.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no percentage set by the standard, whether the fund is listed or not: numerical exposure thresholds do not appear in the standard as thresholds (IFRS 10, para. B72). Rule to remember: A listed / unlisted distinction creates no numerical threshold (IFRS 10, para. B72).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000042","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.REMUNERATION_EXPOSURE","IFRS10.AGENCY.FACTORS"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000042","tested_point":"QST.IFRS10.000042","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-factors"},"references":["IFRS 10 §B68","IFRS 10 §B60"],"exercise":{"prompt":{"fr":"","en":"Sextant SA manages a fund for a fee commensurate with the services provided, which includes only terms customary for such services. Sextant also holds a small interest in the fund (case data). What can be concluded?","es":""},"explanation":{"fr":"","en":"Remuneration commensurate with the services and including only customary terms is all the more consistent with an agent role (IFRS 10, para. B68); but the decision maker weighs the scope of its authority, the rights of others, its remuneration and its exposure to other interests, with no factor decisive by itself (IFRS 10, para. B60). The facts are case data. Trap: Treating a single factor as decisive. Rule to remember: Remuneration guides the analysis but does not settle it alone (IFRS 10, para. B60).","es":""},"common_error":{"fr":"","en":"Treating a single factor, for example remuneration or the interest, as decisive.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Sextant is an agent: remuneration commensurate with the services provided is enough to establish that role, whatever its decision-making authority and the rights of the other parties.","es":""},"correct":false,"feedback":{"fr":"","en":"Remuneration is only one factor, alongside the scope of authority, the rights of others and exposure to other interests; none is decisive by itself (IFRS 10, para. B60). Rule to remember: A single factor is not enough to conclude on agent status (IFRS 10, para. B60).","es":""}},{"id":"B","text":{"fr":"","en":"Sextant is a principal: holding an interest in the fund is enough to establish that it acts on its own behalf and not for others.","es":""},"correct":false,"feedback":{"fr":"","en":"Exposure from other interests is a factor, but not the only one: the conclusion weighs all the factors, none being decisive by itself (IFRS 10, para. B60). A small interest does not make the manager a principal. Rule to remember: An interest does not by itself establish principal status (IFRS 10, para. B60).","es":""}},{"id":"C","text":{"fr":"","en":"Sextant is a principal: customary terms in its remuneration are an indication that it controls the fund and acts on its own behalf.","es":""},"correct":false,"feedback":{"fr":"","en":"The more commensurate the remuneration is with the services and the more it is limited to customary terms, the more consistent it is with an agent role (IFRS 10, para. B68); that is the opposite of an indication of control. Rule to remember: Customary terms point to agent status (IFRS 10, para. B68).","es":""}},{"id":"D","text":{"fr":"","en":"These elements are consistent with an agent role, but the conclusion results from the overall analysis of the factors, none of them being decisive by itself.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000044","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.COMBINATION_ELIMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000044","tested_point":"QST.IFRS10.000044","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-combination"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"In the consolidated financial statements, the carrying amount of the parent's investment in a subsidiary is eliminated against the parent's portion of the equity of that subsidiary.","es":""},"explanation":{"fr":"","en":"To consolidate, the entity combines like items line by line, then eliminates the carrying amount of the parent's investment and the parent's portion of the equity of each subsidiary (IFRS 10, para. B86). Trap: Adding up the items without eliminating the investment and the subsidiary's equity. Rule to remember: The parent's investment is eliminated against its portion of the subsidiary's equity (IFRS 10, para. B86).","es":""},"common_error":{"fr":"","en":"Adding up the items of the parent and the subsidiary without eliminating the investment.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000045","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.COMBINATION_ELIMINATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000045","tested_point":"QST.IFRS10.000045","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-combination"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Orme SA owns 100% of Pin SA. Orme reports: cash 100,000 and shares in Pin 60,000. Pin reports: cash 25,000 and inventories 35,000, no debt, for equity of 60,000. Case convention: the carrying amount of the shares in Pin equals Pin's equity, and there is no goodwill and no intragroup transaction. What is the total of consolidated assets?","es":""},"explanation":{"fr":"","en":"Method: line-by-line combination: cash 100,000 + 25,000 = 125,000, inventories 35,000, shares 60,000, i.e. 220,000; elimination of the shares against Orme's portion of Pin's equity (60,000): 220,000 − 60,000 = 160,000 (IFRS 10, para. B86). The data are case conventions. Trap: Adding up without eliminating the investment. Rule to remember: Combine line by line, then eliminate the investment against the subsidiary's equity (IFRS 10, para. B86).","es":""},"common_error":{"fr":"","en":"Adding up the items of the parent and the subsidiary without eliminating the investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"220,000","es":""},"correct":false,"feedback":{"fr":"","en":"220,000 is the total obtained by adding the items without eliminating the shares of Pin held by Orme (IFRS 10, para. B86). The same items would be counted twice. Rule to remember: The elimination of the investment comes before the consolidated total (IFRS 10, para. B86).","es":""}},{"id":"B","text":{"fr":"","en":"160,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"100,000","es":""},"correct":false,"feedback":{"fr":"","en":"100,000 amounts to eliminating Pin's assets as well, whereas only the shares are eliminated against the subsidiary's equity (IFRS 10, para. B86). Pin's assets stay combined line by line. Rule to remember: The investment is eliminated, not the subsidiary's assets (IFRS 10, para. B86).","es":""}},{"id":"D","text":{"fr":"","en":"125,000","es":""},"correct":false,"feedback":{"fr":"","en":"125,000 adds only the two cash amounts and forgets Pin's inventories: combination is line by line for all like items (IFRS 10, para. B86). Rule to remember: All of the subsidiary's items are combined with those of the parent (IFRS 10, para. B86).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000047","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.UNIFORM_POLICIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000047","tested_point":"QST.IFRS10.000047","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-uniform"},"references":["IFRS 10 §19","IFRS 10 §B87"],"exercise":{"prompt":{"fr":"","en":"A subsidiary applies, for transactions similar to the group's, an accounting policy different from the parent's. How does the parent prepare its consolidated financial statements?","es":""},"explanation":{"fr":"","en":"The parent prepares consolidated financial statements using uniform accounting policies for like transactions and events in similar circumstances (IFRS 10, para. 19); where a group member uses different policies, adjustments are made in the consolidation, without changing the subsidiary's own financial statements (IFRS 10, para. B87). Trap: Consolidating a subsidiary's amounts without aligning the policies. Rule to remember: Uniform policies in the consolidation, the subsidiary's accounts unchanged (IFRS 10, para. B87).","es":""},"common_error":{"fr":"","en":"Consolidating the subsidiary's amounts without aligning policies, or changing its own accounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It changes the subsidiary's own financial statements so that they apply the group's policies, before taking their amounts into the consolidation.","es":""},"correct":false,"feedback":{"fr":"","en":"Adjustments are made within the consolidation and not in the subsidiary's own financial statements, which remain unchanged (IFRS 10, para. B87). Changing the subsidiary's accounts confuses consolidation with keeping its books. Rule to remember: Harmonisation takes place in the consolidation (IFRS 10, para. B87).","es":""}},{"id":"B","text":{"fr":"","en":"It takes the subsidiary's published amounts as they are, policy differences having no effect on presenting the group as a single entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The parent applies uniform accounting policies for like transactions and events in similar circumstances (IFRS 10, para. 19); taking the amounts as they are ignores that requirement. Rule to remember: Uniform policies are required for like transactions (IFRS 10, para. 19).","es":""}},{"id":"C","text":{"fr":"","en":"It presents separately the subsidiary's amounts prepared under other policies, without aligning them with the consolidated items of the rest of the group.","es":""},"correct":false,"feedback":{"fr":"","en":"Consolidated statements combine items line by line under uniform policies (IFRS 10, para. 19); presenting unaligned amounts separately leaves policy differences within the group. Rule to remember: Policy uniformity applies to the consolidated statements as a whole (IFRS 10, para. 19).","es":""}},{"id":"D","text":{"fr":"","en":"It applies uniform policies and makes the necessary adjustments within the consolidation, without changing the subsidiary's own financial statements.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000048","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.UNIFORM_POLICIES"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000048","tested_point":"QST.IFRS10.000048","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-uniform"},"references":["IFRS 10 §B87"],"exercise":{"prompt":{"fr":"","en":"Pin SA, a subsidiary of Orme SA, measures certain assets under an accounting policy different from Orme's for similar assets (case data). Pin must keep its policy in its individual accounts, which its auditor has approved. Where is the restatement to harmonise policies made?","es":""},"explanation":{"fr":"","en":"When a group member uses different policies, adjustments are made within the consolidation, without changing the subsidiary's own financial statements (IFRS 10, para. B87): Pin keeps its policy in its accounts, and the restatement appears only in the consolidation work. Trap: Consolidating without harmonising, or changing the subsidiary's accounts. Rule to remember: Uniformity adjustments are consolidation entries, outside the subsidiary's accounts (IFRS 10, para. B87).","es":""},"common_error":{"fr":"","en":"Restating the subsidiary's accounts instead of adjusting within the consolidation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In Pin's own financial statements, which must be changed before being passed on for the consolidation.","es":""},"correct":false,"feedback":{"fr":"","en":"Changing Pin's accounts is not the route set out: adjustments are made in the consolidation and the subsidiary's statements do not change (IFRS 10, para. B87). Rule to remember: The harmonisation restatement is consolidation work (IFRS 10, para. B87).","es":""}},{"id":"B","text":{"fr":"","en":"Within the consolidation, Pin's own financial statements remaining unchanged.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In Orme's individual financial statements, which take over Pin's policy for the assets of its subsidiary.","es":""},"correct":false,"feedback":{"fr":"","en":"Orme's individual statements are not the place for the adjustment: it is made in the consolidation (IFRS 10, para. B87). Imposing the subsidiary's policy on the parent's accounts moves the problem without making the consolidated statements uniform. Rule to remember: The adjustment sits in the consolidation (IFRS 10, para. B87).","es":""}},{"id":"D","text":{"fr":"","en":"Nowhere, since Pin's policy, having been approved by its auditor, is binding on the group.","es":""},"correct":false,"feedback":{"fr":"","en":"Approval of the individual accounts does not remove the requirement for uniform policies in the consolidated statements; adjustments are made in the consolidation (IFRS 10, para. B87). Rule to remember: A subsidiary's own policy does not remove the need to harmonise in the consolidation (IFRS 10, para. B87).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000050","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"CALCULATION","context":"V1_VG.IFRS10.000003","tested_point":"VG.IFRS10.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"rule-eliminate"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"Sud SA, a subsidiary of Nord SA, sold goods to Nord at a transfer price. At the reporting date, goods worth {inventory_remaining} at transfer price remain in Nord's inventory. Case convention: Sud's profit margin on these sales is {seller_margin} of the transfer price. Calculate the unrealised profit to be eliminated in the consolidated financial statements.","es":""},"explanation":{"fr":"","en":"Method: 80,000 × 25% = 20,000. Unrealised profits on remaining assets from an intragroup transaction are eliminated in full, together with intragroup income and expenses (IFRS 10, para. B86). The percentage is case data, not a rule. Trap: Eliminating intragroup revenue without removing the unrealised profit contained in the remaining inventory. Rule to remember: The profit contained in inventory still held by the group is eliminated in full (IFRS 10, para. B86).","es":""},"common_error":{"fr":"","en":"Eliminating all intragroup revenue without removing the unrealised profit from the remaining inventory.","es":""},"format":"CALCULATION","placeholders":[{"id":"inventory_remaining","value":"80000","unit":"EUR"},{"id":"seller_margin","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Inventory remaining with Nord, at transfer price","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Seller's profit margin (case convention)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"UNREALISED_PROFIT","label":{"fr":"","en":"Unrealised profit to be eliminated","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"UNREALISED_PROFIT","meaning":{"fr":"","en":"Unrealised profit to be eliminated","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Inventory remaining with Nord, at transfer price","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Seller's profit margin (case convention)","es":""},"value":25,"unit":"PERCENT"}],"result":20000,"unit":"EUR"}],"rationale":{"fr":"","en":"The profit contained in inventory still held by the group is eliminated in full (IFRS 10, para. B86).","es":""},"references":["REF.IFRS10.B86"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000052","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.INTRAGROUP_UNREALISED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000052","tested_point":"QST.IFRS10.000052","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000009","section_id":"rule-eliminate"},"references":["IFRS 10 §B86"],"exercise":{"prompt":{"fr":"","en":"A group company sells goods to another group company, and some of the goods are still in inventory at the reporting date. What must be eliminated in the consolidated financial statements?","es":""},"explanation":{"fr":"","en":"Intragroup assets, liabilities, equity, income, expenses and cash flows are eliminated in full, including unrealised profits or losses on the assets that remain (IFRS 10, para. B86). For goods still in inventory, one therefore removes the intragroup revenue and expenses and the profit contained in the inventory. Trap: Eliminating intragroup revenue without removing the unrealised profit from the remaining inventory. Rule to remember: Intragroup elimination is in full and also covers unrealised profit (IFRS 10, para. B86).","es":""},"common_error":{"fr":"","en":"Eliminating intragroup revenue without removing the unrealised profit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The intragroup revenue, the profit contained in the remaining inventory staying in the value of consolidated inventory.","es":""},"correct":false,"feedback":{"fr":"","en":"Eliminating revenue alone would leave in consolidated inventory a profit the group has not realised: unrealised profits on remaining assets are also eliminated (IFRS 10, para. B86). Rule to remember: The elimination also covers the profit contained in the remaining inventory (IFRS 10, para. B86).","es":""}},{"id":"B","text":{"fr":"","en":"The unrealised profit on the remaining inventory, the intragroup income and expenses remaining shown in consolidated profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Intragroup income and expenses are eliminated in full: leaving them in consolidated profit or loss would count the same transaction twice (IFRS 10, para. B86). Rule to remember: Intragroup income and expenses disappear from the consolidated statements (IFRS 10, para. B86).","es":""}},{"id":"C","text":{"fr":"","en":"The intragroup revenue and expenses, together with the unrealised profit contained in the inventory still held.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The part of the sale's profit corresponding to the non-controlling interests in the selling company, the remainder being kept.","es":""},"correct":false,"feedback":{"fr":"","en":"The elimination is in full for intragroup items, including unrealised profits on remaining assets (IFRS 10, para. B86); it is not limited to a fraction of the profit, whatever the ownership split of the selling company. Rule to remember: Unrealised profit is eliminated in full, with no proration (IFRS 10, para. B86).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000053","standard_id":"IFRS10","concept_ids":["IFRS10.PROCEDURES.REPORTING_DATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000053","tested_point":"QST.IFRS10.000053","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000008","section_id":"rule-dates"},"references":["IFRS 10 §B92","IFRS 10 §B93"],"exercise":{"prompt":{"fr":"","en":"A subsidiary's reporting date differs from its parent's. What does the consolidation require?","es":""},"explanation":{"fr":"","en":"The statements of the parent and its subsidiaries used for consolidation are prepared as of the same reporting date; if the subsidiary's date differs, it prepares additional information as of the parent's date, unless impracticable (IFRS 10, para. B92); in that case the parent uses the subsidiary's latest statements adjusted for the effects of significant transactions or events (IFRS 10, para. B93). Trap: Ignoring significant transactions between the two dates. Rule to remember: Same date, otherwise additional information, otherwise latest statements adjusted (IFRS 10, para. B92).","es":""},"common_error":{"fr":"","en":"Ignoring significant transactions between the subsidiary's date and the parent's.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The subsidiary prepares additional financial information as of the parent's reporting date, unless this is impracticable.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The parent consolidates the subsidiary's statements at their own reporting date, with no additional information, the date difference having no effect.","es":""},"correct":false,"feedback":{"fr":"","en":"The statements of the parent and its subsidiaries used for consolidation are prepared as of the same reporting date (IFRS 10, para. B92); consolidating statements at different dates with no additional information ignores that requirement. Rule to remember: Consolidation requires a common date, obtained if necessary through additional information (IFRS 10, para. B92).","es":""}},{"id":"C","text":{"fr":"","en":"The subsidiary changes its legal reporting date to coincide with the parent's, whatever its local constraints.","es":""},"correct":false,"feedback":{"fr":"","en":"The text does not force the subsidiary to change its legal date: it provides for additional information as of the parent's date (IFRS 10, para. B92). Imposing that change adds an obligation that does not exist. Rule to remember: The solution is additional information, not a change of legal date (IFRS 10, para. B92).","es":""}},{"id":"D","text":{"fr":"","en":"The parent uses the subsidiary's latest statements without adjusting them, even if significant transactions occurred between the two dates.","es":""},"correct":false,"feedback":{"fr":"","en":"If additional information is impracticable, the parent uses the subsidiary's latest statements adjusted for the effects of significant transactions or events (IFRS 10, para. B93). Not adjusting would ignore the transactions of the intervening period. Rule to remember: The latest statements are used after adjustment for significant events (IFRS 10, para. B93).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000055","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.PRESENTATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS10.000004","tested_point":"VG.IFRS10.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"understand"},"references":["IFRS 10 §22"],"exercise":{"prompt":{"fr":"","en":"In the consolidated statement of financial position, non-controlling interests are presented within equity, separately from the equity of the owners of the parent.","es":""},"explanation":{"fr":"","en":"A parent presents non-controlling interests in the consolidated statement of financial position, within equity, separately from the equity of the owners of the parent (IFRS 10, para. 22). Trap: Presenting them as liabilities or outside equity. Rule to remember: Non-controlling interests: within equity, on a separate line (IFRS 10, para. 22).","es":""},"common_error":{"fr":"","en":"Presenting non-controlling interests as liabilities or outside equity.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000056","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.PRESENTATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000056","tested_point":"QST.IFRS10.000056","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"understand"},"references":["IFRS 10 §22"],"exercise":{"prompt":{"fr":"","en":"Where and how does a parent present non-controlling interests in the consolidated statement of financial position?","es":""},"explanation":{"fr":"","en":"A parent presents non-controlling interests in the consolidated statement of financial position, within equity, separately from the equity of the owners of the parent (IFRS 10, para. 22). Trap: Presenting them as liabilities or outside equity. Rule to remember: Within equity, on a separate line (IFRS 10, para. 22).","es":""},"common_error":{"fr":"","en":"Presenting non-controlling interests as liabilities.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Within equity, separately from the equity of the owners of the parent.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Within liabilities, like borrowings, since they represent the claims of third parties on the group.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-controlling interests are not liabilities: the text places them within equity (IFRS 10, para. 22). Classifying them as liabilities would make them an obligation of the parent, which they are not. Rule to remember: Non-controlling interests belong to equity (IFRS 10, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"Within equity, but grouped with that of the owners of the parent, with no separate line.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification within equity is right, but the presentation must be separate from that of the owners of the parent (IFRS 10, para. 22). Merging them would hide the third parties' share. Rule to remember: A separate line is required within equity (IFRS 10, para. 22).","es":""}},{"id":"D","text":{"fr":"","en":"Outside the statement of financial position, in a note, since they do not concern the owners of the parent.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-controlling interests are presented in the consolidated statement of financial position itself, within equity (IFRS 10, para. 22); moving them to a note would make them disappear from the balance sheet. Rule to remember: They appear in the consolidated balance sheet, within equity (IFRS 10, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000057","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.PRESENTATION"],"dimension":"ANALYSIS","context":"V1_VG.IFRS10.000004","tested_point":"VG.IFRS10.000004","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"understand"},"references":["IFRS 10 §22"],"exercise":{"prompt":{"fr":"","en":"An intern presents the non-controlling interests of the Orme group among liabilities in the consolidated statement of financial position. What correction is needed?","es":""},"explanation":{"fr":"","en":"Non-controlling interests are not liabilities: they are presented in the consolidated statement of financial position, within equity, separately from the equity of the owners of the parent (IFRS 10, para. 22). Trap: Presenting them as liabilities or outside equity. Rule to remember: Within equity, on a separate line (IFRS 10, para. 22).","es":""},"common_error":{"fr":"","en":"Presenting non-controlling interests as liabilities or outside equity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deduct them from the equity of the owners of the parent, so as to show the group's share.","es":""},"correct":false,"feedback":{"fr":"","en":"Deducting them from the equity of the owners of the parent would erase the third parties' share from the consolidated balance sheet, whereas the text presents them within equity, separately (IFRS 10, para. 22). Rule to remember: The third parties' share is shown, not deducted (IFRS 10, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"Present them outside the statement of financial position, in a note on the group structure.","es":""},"correct":false,"feedback":{"fr":"","en":"A note would take these interests out of the statement of financial position, where they appear, within equity (IFRS 10, para. 22). Rule to remember: Non-controlling interests are presented in the consolidated balance sheet (IFRS 10, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"Present them within equity, separately from the equity of the owners of the parent.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Include them in the equity of the owners of the parent, without distinguishing them from it.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification within equity is right but the presentation must remain separate from that of the owners of the parent (IFRS 10, para. 22). Merging them would hide the third parties' share. Rule to remember: Non-controlling interests have their own line (IFRS 10, para. 22).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS10.000058","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.ATTRIBUTION"],"dimension":"CALCULATION","context":"V1_VG.IFRS10.000005","tested_point":"VG.IFRS10.000005","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-attribution"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"Pin SA, a subsidiary of the Orme group, reports a profit of {subsidiary_profit} for the year. Third parties hold {nci_pct} of Pin. Case convention: the percentages did not change during the year, and there are no intragroup eliminations or other comprehensive income. Calculate the share of profit attributed to the non-controlling interests.","es":""},"explanation":{"fr":"","en":"Method: 300,000 × 25% = 75,000. Profit is attributed to the owners of the parent and to the non-controlling interests in proportion to present ownership interests (IFRS 10, para. B94); the owners of the parent receive the balance, 225,000. Trap: Attributing profit according to the interest at the acquisition date. Rule to remember: Attribution follows present ownership interests (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Attributing profit according to the acquisition-date interest instead of the present interest.","es":""},"format":"CALCULATION","placeholders":[{"id":"subsidiary_profit","value":"300000","unit":"EUR"},{"id":"nci_pct","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Profit of the subsidiary","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held by third parties","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"NCI_SHARE","label":{"fr":"","en":"Share attributed to the non-controlling interests","es":""},"answer":75000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NCI_SHARE","meaning":{"fr":"","en":"Share attributed to the non-controlling interests","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit of the subsidiary","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Percentage held by third parties","es":""},"value":25,"unit":"PERCENT"}],"result":75000,"unit":"EUR"}],"rationale":{"fr":"","en":"Attribution follows present ownership interests (IFRS 10, para. B94).","es":""},"references":["REF.IFRS10.B94"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000060","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.ATTRIBUTION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS10.000060","tested_point":"QST.IFRS10.000060","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-attribution"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"A colleague attributes Pin SA's profit for the year to the non-controlling interests at the percentage third parties held at the acquisition date, i.e. 20%. Since a disposal by the parent before the start of the year, third parties hold 30% of Pin. What is the error?","es":""},"explanation":{"fr":"","en":"Profit and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests in proportion to present ownership interests (IFRS 10, para. B94): here 30%, not 20%. Trap: Attributing profit according to the acquisition-date interest. Rule to remember: Attribute according to present ownership interests (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Attributing profit according to the acquisition-date interest instead of the present interest.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should have attributed all the profit to the owners of the parent, third parties being entitled to the dividends they receive.","es":""},"correct":false,"feedback":{"fr":"","en":"Profit is attributed to the non-controlling interests according to their present ownership interests, and is not limited to dividends paid (IFRS 10, para. B94). Rule to remember: Third parties receive their share of profit, regardless of distributions (IFRS 10, para. B94).","es":""}},{"id":"B","text":{"fr":"","en":"It uses the acquisition-date percentage whereas profit is attributed according to present ownership interests, i.e. 30%.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It should have used the average of the acquisition-date and present percentages, i.e. 25%, to smooth the effect of the disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The text refers to present ownership interests, not to an average of two dates (IFRS 10, para. B94). Smoothing the percentage would create a method the standard does not provide. Rule to remember: Attribution follows the present interest (IFRS 10, para. B94).","es":""}},{"id":"D","text":{"fr":"","en":"It is right: the acquisition-date percentage remains applicable as long as the parent keeps control of Pin.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition-date percentage is not frozen: attribution follows present ownership interests (IFRS 10, para. B94). The colleague's reasoning ignores the disposal that changed the third parties' share. Rule to remember: A change in percentage changes the attribution base (IFRS 10, para. B94).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000061","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.DEFICIT_BALANCE"],"dimension":"CALCULATION","context":"V1_QST.IFRS10.000061","tested_point":"QST.IFRS10.000061","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-deficit"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"Tilleul SA, a subsidiary of the Orme group, records a loss of {subsidiary_loss} for the year. Third parties hold {nci_pct} of Tilleul, and the carrying amount of their non-controlling interests is {opening_nci} at the start of the year. Case convention: no dividend and no other comprehensive income; a negative balance is shown with a minus sign. Calculate the closing balance of the non-controlling interests.","es":""},"explanation":{"fr":"","en":"Method: third parties' share of the loss 440,000 × 25% = 110,000; closing balance 50,000 − 110,000 = −60,000. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the latter having a deficit balance (IFRS 10, para. B94): the balance is not capped at zero. Trap: Capping the third parties' share at zero and charging the excess losses to the parent. Rule to remember: The third parties' balance may become negative (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Capping the third parties' share at zero and charging the excess losses to the owners of the parent.","es":""},"format":"CALCULATION","placeholders":[{"id":"subsidiary_loss","value":"440000","unit":"EUR"},{"id":"nci_pct","value":"25","unit":"PERCENT"},{"id":"opening_nci","value":"50000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Loss of the subsidiary","es":""},"value":"440000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held by third parties","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Non-controlling interests at the start of the year","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"CLOSING_NCI","label":{"fr":"","en":"Non-controlling interests at the end of the year","es":""},"answer":-60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_NCI","meaning":{"fr":"","en":"Non-controlling interests at the end of the year","es":""},"expression":"a - (b * c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Non-controlling interests at the start of the year","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss of the subsidiary","es":""},"value":440000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Percentage held by third parties","es":""},"value":25,"unit":"PERCENT"}],"result":-60000,"unit":"EUR"}],"rationale":{"fr":"","en":"The third parties' balance may become negative (IFRS 10, para. B94).","es":""},"references":["REF.IFRS10.B94"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000063","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.DEFICIT_BALANCE"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000063","tested_point":"QST.IFRS10.000063","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-deficit"},"references":["IFRS 10 §B94"],"exercise":{"prompt":{"fr":"","en":"Pin SA records a loss of 100,000. Third parties hold 20% of Pin, and their non-controlling interests stand at 12,000 before this loss. Case convention: no dividend and no other comprehensive income. How do third parties bear their share of the loss?","es":""},"explanation":{"fr":"","en":"Method: third parties' share of the loss 100,000 × 20% = 20,000; balance 12,000 − 20,000 = −8,000. Total comprehensive income is attributed to both categories of owners even if this leaves the non-controlling interests with a deficit balance (IFRS 10, para. B94). Trap: Capping the third parties' share at zero. Rule to remember: The third parties' deficit balance is not capped at zero (IFRS 10, para. B94).","es":""},"common_error":{"fr":"","en":"Capping the third parties' share at zero and charging the excess losses to the parent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Their balance is brought to zero, and the excess of 8,000 is charged to the owners of the parent.","es":""},"correct":false,"feedback":{"fr":"","en":"Charging the excess to the parent would amount to capping the third parties' share at zero, which the text rules out: attribution is made even if it leaves a deficit balance (IFRS 10, para. B94). Rule to remember: The third parties' loss is not shifted to the parent (IFRS 10, para. B94).","es":""}},{"id":"B","text":{"fr":"","en":"Their balance stays at 12,000, losses being attributed to third parties up to the dividends they have received.","es":""},"correct":false,"feedback":{"fr":"","en":"Attribution follows present ownership interests and is not limited to dividends received: third parties bear 20% of the loss (IFRS 10, para. B94). Rule to remember: Third parties bear their share of loss, distributions or not (IFRS 10, para. B94).","es":""}},{"id":"C","text":{"fr":"","en":"Their balance is brought to zero, and the excess of 8,000 is carried forward to be charged against their future profits.","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying the excess forward to charge it against future profits would also cap the third parties' balance at zero: the text attributes the loss even if the balance becomes a deficit (IFRS 10, para. B94). Rule to remember: No carry-forward: the loss is attributed in the year (IFRS 10, para. B94).","es":""}},{"id":"D","text":{"fr":"","en":"Their share of 20,000 is attributed to them in full: their balance becomes negative, at −8,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000064","standard_id":"IFRS10","concept_ids":["IFRS10.NCI.PREFERENCE_SHARES"],"dimension":"CALCULATION","context":"V1_QST.IFRS10.000064","tested_point":"QST.IFRS10.000064","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000010","section_id":"rule-preference"},"references":["IFRS 10 §B95"],"exercise":{"prompt":{"fr":"","en":"Hêtre SA, a subsidiary of the Orme group, reports a profit of {subsidiary_profit}. It has issued cumulative preference shares, classified as equity and held by third parties; their cumulative dividend for the year is {preference_dividends}, whether or not declared (case data). Calculate the profit of Hêtre attributable to the other holders, on which the parent's share of profit is calculated.","es":""},"explanation":{"fr":"","en":"Method: 640,000 − 56,000 = 584,000. When a subsidiary has cumulative preference shares classified as equity and held by non-controlling interests, the parent computes its share of profit after adjusting for the dividends on those shares, whether or not declared (IFRS 10, para. B95). Trap: Ignoring the undeclared cumulative dividend. Rule to remember: The cumulative preference dividend is deducted before computing the parent's share (IFRS 10, para. B95).","es":""},"common_error":{"fr":"","en":"Ignoring the undeclared cumulative dividend when attributing profit.","es":""},"format":"CALCULATION","placeholders":[{"id":"subsidiary_profit","value":"640000","unit":"EUR"},{"id":"preference_dividends","value":"56000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Profit of the subsidiary","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative dividend on preference shares held by third parties","es":""},"value":"56000","unit":"EUR"}],"steps":[{"id":"PROFIT_AFTER_PREFERENCE","label":{"fr":"","en":"Profit after the preference dividend","es":""},"answer":584000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_AFTER_PREFERENCE","meaning":{"fr":"","en":"Profit after the preference dividend","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit of the subsidiary","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative dividend on preference shares held by third parties","es":""},"value":56000,"unit":"EUR"}],"result":584000,"unit":"EUR"}],"rationale":{"fr":"","en":"The cumulative preference dividend is deducted before computing the parent's share (IFRS 10, para. B95).","es":""},"references":["REF.IFRS10.B95"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000065","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"CALCULATION","context":"V1_QST.IFRS10.000065","tested_point":"QST.IFRS10.000065","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"rule-equity"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"Orme SA controls Pin SA; the carrying amount of the non-controlling interests in Pin is {nci_carrying}. Orme acquires from third parties a fraction of {proportion_acquired} of those interests for {consideration} in cash and keeps control (case assumption). Calculate the difference recognised directly in equity, that is, the decrease in equity attributable to the owners of the parent.","es":""},"explanation":{"fr":"","en":"Method: carrying amount transferred to the owners of the parent 400,000 × 25% = 100,000; difference 130,000 − 100,000 = 30,000, recognised directly in equity and attributed to the owners of the parent (IFRS 10, para. B96). A change in ownership without loss of control is an equity transaction: no profit or loss, no additional goodwill (IFRS 10, para. 23). Trap: Recognising the difference in profit or loss. Rule to remember: Buying non-controlling interests without losing control produces neither gain nor loss (IFRS 10, para. 23).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the difference between the price paid to third parties and the carrying amount of the non-controlling interests.","es":""},"format":"CALCULATION","placeholders":[{"id":"nci_carrying","value":"400000","unit":"EUR"},{"id":"proportion_acquired","value":"25","unit":"PERCENT"},{"id":"consideration","value":"130000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the non-controlling interests","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Fraction of the non-controlling interests acquired","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Consideration paid in cash","es":""},"value":"130000","unit":"EUR"}],"steps":[{"id":"EQUITY_ADJUSTMENT","label":{"fr":"","en":"Difference recognised in equity","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EQUITY_ADJUSTMENT","meaning":{"fr":"","en":"Difference recognised in equity","es":""},"expression":"a - (b * c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration paid in cash","es":""},"value":130000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the non-controlling interests","es":""},"value":400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fraction of the non-controlling interests acquired","es":""},"value":25,"unit":"PERCENT"}],"result":30000,"unit":"EUR","rationale":{"fr":"","en":"difference 130,000 − 100,000 = 30,000, recognised directly in equity and attributed to the owners of the parent (IFRS 10, para. B96).","es":""}}],"rationale":{"fr":"","en":"Buying non-controlling interests without losing control produces neither gain nor loss (IFRS 10, para. 23).","es":""},"references":["REF.IFRS10.23","REF.IFRS10.B96"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000067","standard_id":"IFRS10","concept_ids":["IFRS10.OWNERSHIP.EQUITY_TRANSACTION"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000067","tested_point":"QST.IFRS10.000067","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000011","section_id":"rule-equity"},"references":["IFRS 10 §23","IFRS 10 §B96"],"exercise":{"prompt":{"fr":"","en":"Orme SA holds 80% of Pin SA. It sells 10 percentage points to third parties (70% afterwards) for 90,000 in cash and keeps control. The amount by which the non-controlling interests increase is 70,000 (case data). How is the difference between 90,000 and 70,000 accounted for?","es":""},"explanation":{"fr":"","en":"A sale of an interest without loss of control is a transaction with owners in their capacity as owners (IFRS 10, para. 23): the entity adjusts the carrying amount of the non-controlling interests, and the difference between that adjustment (70,000) and the consideration received (90,000), i.e. 20,000, is recognised directly in equity and attributed to the owners of the parent; no profit or loss, no additional goodwill (IFRS 10, para. B96). Trap: Recognising the difference in profit or loss. Rule to remember: Without loss of control, the difference goes to equity (IFRS 10, para. B96).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the difference between the price received and the carrying amount of the non-controlling interests.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In consolidated profit or loss, as a gain of 20,000, the sale being made at a price above carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"A sale that leaves control gives rise to no profit or loss: the difference is recognised directly in equity (IFRS 10, para. B96). A gain in consolidated profit or loss would be that of a loss of control. Rule to remember: No profit or loss while control is retained (IFRS 10, para. B96).","es":""}},{"id":"B","text":{"fr":"","en":"Directly in equity, attributed to the owners of the parent, with no profit or loss and no additional goodwill.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As additional goodwill of 20,000, the sale having brought new holders into Pin's capital.","es":""},"correct":false,"feedback":{"fr":"","en":"No additional goodwill arises when the parent's interest changes without loss of control (IFRS 10, para. B96). Goodwill relates to obtaining control, not to a later sale. Rule to remember: No additional goodwill in an equity transaction (IFRS 10, para. B96).","es":""}},{"id":"D","text":{"fr":"","en":"In other comprehensive income, then in profit or loss at the next reporting date, by reclassifying the amount of 20,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is not an item of other comprehensive income; it is recognised directly in equity and attributed to the owners of the parent (IFRS 10, para. B96). Reclassifying it to profit or loss matches no rule. Rule to remember: The difference stays in equity, with no reclassification (IFRS 10, para. B96).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000069","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.DERECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IFRS10.000069","tested_point":"QST.IFRS10.000069","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-steps"},"references":["IFRS 10 §25","IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"Orme SA loses control of Pin SA. At the date control is lost, Pin's assets are carried in the consolidated accounts at {assets_incl_goodwill}, goodwill included, and its liabilities at {liabilities}. Calculate the carrying amount of Pin's net assets to be derecognised, before taking the non-controlling interests into account.","es":""},"explanation":{"fr":"","en":"Method: 1,450,000 − 620,000 = 830,000. On loss of control, the parent derecognises the assets and liabilities of the former subsidiary, goodwill included (IFRS 10, para. 25); the carrying amount of the assets, goodwill included, and of the liabilities enters the calculation of the gain or loss (IFRS 10, para. B98). Trap: Forgetting to derecognise the goodwill. Rule to remember: Goodwill is part of the assets derecognised (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Forgetting to derecognise the goodwill or the carrying amount of the non-controlling interests.","es":""},"format":"CALCULATION","placeholders":[{"id":"assets_incl_goodwill","value":"1450000","unit":"EUR"},{"id":"liabilities","value":"620000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Assets of the subsidiary, goodwill included","es":""},"value":"1450000","unit":"EUR"},{"label":{"fr":"","en":"Liabilities of the subsidiary","es":""},"value":"620000","unit":"EUR"}],"steps":[{"id":"NET_ASSETS","label":{"fr":"","en":"Net assets derecognised","es":""},"answer":830000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_ASSETS","meaning":{"fr":"","en":"Net assets derecognised","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Assets of the subsidiary, goodwill included","es":""},"value":1450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liabilities of the subsidiary","es":""},"value":620000,"unit":"EUR"}],"result":830000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill is part of the assets derecognised (IFRS 10, para. B98).","es":""},"references":["REF.IFRS10.25","REF.IFRS10.B98"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000071","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.DERECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000071","tested_point":"QST.IFRS10.000071","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-steps"},"references":["IFRS 10 §25","IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"What does a parent derecognise when it loses control of a subsidiary?","es":""},"explanation":{"fr":"","en":"On loss of control, the parent derecognises the assets and liabilities of the former subsidiary (IFRS 10, para. 25), together with the carrying amount of the non-controlling interests, goodwill being included in the assets derecognised for the calculation of the gain or loss (IFRS 10, para. B98). Trap: Forgetting to derecognise the goodwill or the non-controlling interests. Rule to remember: Everything that related to the subsidiary leaves the consolidated balance sheet (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Forgetting to derecognise the goodwill or the carrying amount of the non-controlling interests.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The shares of the subsidiary recorded in the parent's individual accounts, the consolidated assets and liabilities remaining in the group's consolidated balance sheet.","es":""},"correct":false,"feedback":{"fr":"","en":"Derecognition of the former subsidiary's assets and liabilities takes place in the consolidated accounts (IFRS 10, para. 25). Keeping them in the consolidated balance sheet after loss of control contradicts the text. Rule to remember: The former subsidiary's assets and liabilities leave the consolidated balance sheet (IFRS 10, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"The identifiable assets and liabilities of the former subsidiary, the goodwill and the non-controlling interests staying in the consolidated balance sheet.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is included in the carrying amount of the assets derecognised, as are the non-controlling interests (IFRS 10, para. B98). Leaving them on the balance sheet would distort the calculation of the gain. Rule to remember: Goodwill and non-controlling interests also leave the consolidated balance sheet (IFRS 10, para. B98).","es":""}},{"id":"C","text":{"fr":"","en":"The assets of the former subsidiary and the accumulated profit it has produced, its liabilities remaining in the consolidated balance sheet until settled.","es":""},"correct":false,"feedback":{"fr":"","en":"The former subsidiary's liabilities are derecognised like its assets (IFRS 10, para. 25). Accumulated profit is not an item to derecognise. Rule to remember: Assets and liabilities are derecognised together (IFRS 10, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"The assets and liabilities of the former subsidiary, goodwill included, and the carrying amount of the non-controlling interests.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000072","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.RETAINED_INTEREST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000072","tested_point":"QST.IFRS10.000072","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-steps"},"references":["IFRS 10 §25"],"exercise":{"prompt":{"fr":"","en":"At the date of loss of control, the investment the parent retains in the former subsidiary is recognised at its fair value at that date.","es":""},"explanation":{"fr":"","en":"On loss of control, the parent recognises the fair value of the consideration received and of any retained investment; that fair value becomes the initial carrying amount under IFRS 9 or the cost of an associate or a joint venture (IFRS 10, para. 25). Trap: Keeping the retained investment at its share of the carrying amount. Rule to remember: The retained investment is remeasured at fair value at the date of loss of control (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Keeping the retained investment at its share of the carrying amount.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000074","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.RETAINED_INTEREST"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000074","tested_point":"QST.IFRS10.000074","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-steps"},"references":["IFRS 10 §25","IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"Orme SA held 80% of Pin SA and sells 60 points of it: it loses control and keeps 20%. Orme's share of the carrying amount of Pin's net assets for that 20% is 240,000, and the fair value of the retained interest at the date of loss of control is 300,000 (case data). At what amount is the retained interest recognised?","es":""},"explanation":{"fr":"","en":"The parent recognises the fair value of any retained investment, which becomes its initial carrying amount (IFRS 10, para. 25); the part of the gain relating to measuring the retained investment at fair value is identified (disclosure required by IFRS 12). Here, 300,000 − 240,000 = 60,000 of that gain comes from the remeasurement. Trap: Keeping the retained investment at its share of the carrying amount. Rule to remember: After loss of control, the retained investment is at fair value (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Keeping the retained investment at its share of the carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At its fair value at the date of loss of control, i.e. 300,000; the difference from 240,000 is taken into account in calculating the gain or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"At the share of the carrying amount of Pin's net assets, i.e. 240,000, with no difference to recognise since the investment has not been sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping the share of carrying amount is an error: on loss of control, the retained investment is recognised at fair value (IFRS 10, para. 25). The difference of 60,000 feeds the gain. Rule to remember: The retained investment moves to fair value (IFRS 10, para. 25).","es":""}},{"id":"C","text":{"fr":"","en":"At the original cost of the stake in Pin, loss of control not changing the entry value of the investment.","es":""},"correct":false,"feedback":{"fr":"","en":"Original cost is not the reference: the retained investment is recognised at fair value at the date of loss of control (IFRS 10, para. 25). Keeping historical cost would ignore the change in the nature of the holding. Rule to remember: The date of loss of control sets a new entry value (IFRS 10, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"At the average of fair value and share of carrying amount, i.e. 270,000, in order to smooth the effect of the loss of control.","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided for: the parent recognises the fair value of the retained investment (IFRS 10, para. 25). Smoothing the amount would distort the gain on loss of control. Rule to remember: Fair value, with no smoothing (IFRS 10, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000075","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.GAIN_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IFRS10.000006","tested_point":"VG.IFRS10.000006","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-gain"},"references":["IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"Orme SA loses control of Pin SA and receives {consideration} in cash. The fair value of the retained interest is {retained_fv}, the carrying amount of the non-controlling interests is {nci_carrying} and that of Pin's net assets derecognised, goodwill included, is {net_assets}. Case convention: no other accumulated other comprehensive income to reclassify. Calculate the gain or loss (a negative result is shown with a minus sign).","es":""},"explanation":{"fr":"","en":"Method: 780,000 + 220,000 + 150,000 − 910,000 = 240,000, i.e. a gain. The gain or loss is the difference between the fair value of the consideration received and of the retained investment, on the one hand, and the carrying amount of the assets (goodwill included), liabilities and non-controlling interests derecognised, on the other (IFRS 10, para. B98). The part relating to the fair value of the retained investment is identified. Trap: Limiting the gain to the consideration received. Rule to remember: The gain includes the fair value of the retained investment (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Limiting the gain to the consideration received without including the fair value of the retained investment.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration","value":"780000","unit":"EUR"},{"id":"retained_fv","value":"220000","unit":"EUR"},{"id":"nci_carrying","value":"150000","unit":"EUR"},{"id":"net_assets","value":"910000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consideration received","es":""},"value":"780000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the retained interest","es":""},"value":"220000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the non-controlling interests","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the net assets derecognised","es":""},"value":"910000","unit":"EUR"}],"steps":[{"id":"GAIN","label":{"fr":"","en":"Gain (loss) on loss of control","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN","meaning":{"fr":"","en":"Gain (loss) on loss of control","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration received","es":""},"value":780000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the retained interest","es":""},"value":220000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of the non-controlling interests","es":""},"value":150000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Carrying amount of the net assets derecognised","es":""},"value":910000,"unit":"EUR"}],"result":240000,"unit":"EUR"}],"rationale":{"fr":"","en":"The gain includes the fair value of the retained investment (IFRS 10, para. B98).","es":""},"references":["REF.IFRS10.B98"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000077","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.GAIN_OR_LOSS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS10.000077","tested_point":"QST.IFRS10.000077","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-gain"},"references":["IFRS 10 §B98"],"exercise":{"prompt":{"fr":"","en":"For a loss of control, a colleague calculates: consideration received 700,000 − carrying amount of net assets derecognised 650,000 = gain of 50,000. The colleague ignores the fair value of the retained investment, 150,000, and the carrying amount of the non-controlling interests, 90,000. What is the error?","es":""},"explanation":{"fr":"","en":"The gain or loss is the difference between (i) the fair value of the consideration received and of the retained investment and (ii) the carrying amount of the assets (goodwill included), liabilities and non-controlling interests derecognised (IFRS 10, para. B98). Here: 700,000 + 150,000 + 90,000 − 650,000 = 290,000. Trap: Limiting the gain to the consideration received. Rule to remember: Consideration, retained investment and non-controlling interests all enter the calculation (IFRS 10, para. B98).","es":""},"common_error":{"fr":"","en":"Limiting the gain to the consideration received without including the fair value of the retained investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It wrongly includes the goodwill in the net assets derecognised, which should be limited to the subsidiary's identifiable assets and liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is part of the assets derecognised: its carrying amount enters the calculation of the gain or loss (IFRS 10, para. B98). Removing it from net assets would distort the comparison. Rule to remember: Goodwill is derecognised with the other assets (IFRS 10, para. B98).","es":""}},{"id":"B","text":{"fr":"","en":"It should have kept the retained investment at carrying amount rather than at fair value, which confirms the gain of 50,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The retained investment is recognised at fair value, not at carrying amount (IFRS 10, para. B98). Keeping it at carrying amount would cancel precisely the part of the gain relating to the remeasurement. Rule to remember: The fair value of the retained investment enters the gain (IFRS 10, para. B98).","es":""}},{"id":"C","text":{"fr":"","en":"It omits the fair value of the retained investment and the carrying amount of the non-controlling interests: the gain is 290,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It should have taken the fair value of the retained investment directly to equity, the gain in profit or loss remaining 50,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of the retained investment is not an equity item: it enters the calculation of the gain or loss on loss of control (IFRS 10, para. B98). Rule to remember: The gain is recognised in profit or loss, remeasurement of the retained investment included (IFRS 10, para. B98).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000078","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.OCI_RECLASSIFICATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS10.000078","tested_point":"QST.IFRS10.000078","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-oci"},"references":["IFRS 10 §B99"],"exercise":{"prompt":{"fr":"","en":"On loss of control of Pin SA, the accumulated other comprehensive income relating to Pin includes {oci_reclassifiable} of amounts reclassifiable to profit or loss (translation differences, case convention) and {oci_not_reclassifiable} of amounts whose gains and losses are not reclassified to profit or loss (case convention). Calculate the amount reclassified to profit or loss on loss of control.","es":""},"explanation":{"fr":"","en":"Method: only the reclassifiable amounts pass through profit or loss: 95,000. Amounts recognised in other comprehensive income in relation to the subsidiary are accounted for on the same basis as if the parent had directly disposed of the related assets and liabilities: reclassification to profit or loss or transfer within equity, as the applicable IFRS requires (IFRS 10, para. B99). The 40,000 that is not reclassifiable does not pass through profit or loss. Trap: Also reclassifying the non-reclassifiable amounts. Rule to remember: The treatment follows that of a direct disposal of the assets and liabilities (IFRS 10, para. B99).","es":""},"common_error":{"fr":"","en":"Leaving the accumulated reclassifiable other comprehensive income in equity.","es":""},"format":"CALCULATION","placeholders":[{"id":"oci_reclassifiable","value":"95000","unit":"EUR"},{"id":"oci_not_reclassifiable","value":"40000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accumulated other comprehensive income that is reclassifiable","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated other comprehensive income that is not reclassifiable","es":""},"value":"40000","unit":"EUR"}],"steps":[{"id":"OCI_RECLASSIFIED","label":{"fr":"","en":"Amount reclassified to profit or loss","es":""},"answer":95000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000080","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.OCI_RECLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000080","tested_point":"QST.IFRS10.000080","difficulty":"EXPERT","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-oci"},"references":["IFRS 10 §B99"],"exercise":{"prompt":{"fr":"","en":"On loss of control, the amounts of other comprehensive income relating to the subsidiary remain recognised in equity, with no particular treatment.","es":""},"explanation":{"fr":"","en":"Amounts recognised in other comprehensive income in relation to the subsidiary are accounted for on the same basis as if the parent had directly disposed of the related assets and liabilities: reclassification to profit or loss or transfer within equity, as the applicable IFRS requires (IFRS 10, para. B99). Trap: Leaving the accumulated amounts in equity without the treatment of a disposal. Rule to remember: Loss of control triggers the treatment of other comprehensive income as on a direct disposal (IFRS 10, para. B99).","es":""},"common_error":{"fr":"","en":"Leaving the accumulated amounts of other comprehensive income in equity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000081","standard_id":"IFRS10","concept_ids":["IFRS10.LOSS.MULTIPLE_ARRANGEMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000081","tested_point":"QST.IFRS10.000081","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000013","section_id":"rule-multiple"},"references":["IFRS 10 §B97"],"exercise":{"prompt":{"fr":"","en":"Orme SA sells 40 points of its holding in Pin SA on 15 December, then a further 25 points on 15 March, under a single agreement signed on 15 December with the same buyer. Case assumption: the two sales are negotiated together, make economic sense only together, and the second depends on the first. What must Orme assess?","es":""},"explanation":{"fr":"","en":"A parent may lose control in one or more arrangements; it examines whether the arrangements must be accounted for as a single transaction, on the basis of their terms, their joint economic effect and their interdependence (IFRS 10, para. B97). Here, by case assumption, the sales are negotiated together, make sense only together and the second depends on the first: they form a single loss-of-control transaction. Trap: Treating each sale separately despite their interdependence. Rule to remember: Several arrangements may form a single loss of control (IFRS 10, para. B97).","es":""},"common_error":{"fr":"","en":"Treating each sale separately despite their interdependence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Each sale separately: the first, which leaves control, is an equity transaction, and the second gives rise to a loss-of-control result measured at the date of the second sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Treating two interdependent arrangements separately ignores the required examination: the parent assesses whether the arrangements form a single transaction (IFRS 10, para. B97). The facts given point towards a single transaction. Rule to remember: Interdependent arrangements are analysed together (IFRS 10, para. B97).","es":""}},{"id":"B","text":{"fr":"","en":"Nothing before the second sale, no treatment being provided for until control is actually lost on 15 March.","es":""},"correct":false,"feedback":{"fr":"","en":"Loss of control may result from several transactions, and assessing whether they are a single transaction is required without waiting for the last one (IFRS 10, para. B97). Doing nothing before the second sale ignores that judgement. Rule to remember: The examination covers all the arrangements from the outset (IFRS 10, para. B97).","es":""}},{"id":"C","text":{"fr":"","en":"Whether the arrangements must be accounted for as a single transaction in view of their terms, their joint economic effect and their interdependence; here, they must.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Each sale separately, in profit or loss as it occurs, since the two sales together lead to the loss of control.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising a result for each sale as if each caused loss of control does not meet the required examination: one first assesses whether the arrangements form a single transaction (IFRS 10, para. B97). Rule to remember: The treatment depends on whether the transaction is a single one, assessed beforehand (IFRS 10, para. B97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000084","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.DEFINITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000084","tested_point":"QST.IFRS10.000084","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-definition"},"references":["IFRS 10 §27"],"exercise":{"prompt":{"fr":"","en":"The Ancre fund obtains funds from investors to provide them with investment management services; it commits to them to invest solely for returns; and it measures the performance of substantially all its investments on a fair value basis (case data). What is concluded about its status as an investment entity?","es":""},"explanation":{"fr":"","en":"An investment entity obtains funds from investors to provide them with investment management services, commits to them to invest solely for returns and measures the performance of substantially all its investments on a fair value basis (IFRS 10, para. 27). The three elements are given by the case: Ancre meets the definition. Trap: Calling any company with several subsidiaries an investment entity. Rule to remember: The three elements of the definition must all be present (IFRS 10, para. 27).","es":""},"common_error":{"fr":"","en":"Calling any company holding several subsidiaries an investment entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ancre meets the three elements of the definition of an investment entity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Ancre is an investment entity because it holds several subsidiaries, whatever the way it measures its investments.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding several subsidiaries is not enough to make a company an investment entity: the definition rests on three elements, including measuring investments at fair value (IFRS 10, para. 27). Rule to remember: The number of subsidiaries does not define an investment entity (IFRS 10, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"Ancre is not an investment entity, because measuring its investments at fair value is incompatible with the definition.","es":""},"correct":false,"feedback":{"fr":"","en":"Measuring the performance of investments, substantially all at fair value, is one of the elements of the definition, not an obstacle (IFRS 10, para. 27). Rule to remember: Fair value measurement is part of the definition (IFRS 10, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"Ancre is an investment entity as soon as it receives income from its investments, whatever its commitments to investors.","es":""},"correct":false,"feedback":{"fr":"","en":"Receiving income is not enough: the entity must commit to investors to invest solely for returns (capital appreciation or investment income) (IFRS 10, para. 27). Rule to remember: The commitment to investors is one of the three elements (IFRS 10, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000085","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.CHARACTERISTICS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000085","tested_point":"QST.IFRS10.000085","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-characteristics"},"references":["IFRS 10 §28"],"exercise":{"prompt":{"fr":"","en":"To be an investment entity, an entity must have all the typical characteristics: more than one investment, more than one investor, investors that are not related parties and ownership interests.","es":""},"explanation":{"fr":"","en":"The typical characteristics of an investment entity (more than one investment, more than one investor, unrelated investors, ownership interests) are not mandatory: the absence of one does not necessarily disqualify the entity but calls for a disclosure under IFRS 12 (IFRS 10, para. 28). Trap: Requiring all the typical characteristics before accepting investment entity status. Rule to remember: The typical characteristics inform the analysis without making it conditional (IFRS 10, para. 28).","es":""},"common_error":{"fr":"","en":"Requiring all the typical characteristics before accepting investment entity status.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000086","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000086","tested_point":"QST.IFRS10.000086","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-exception"},"references":["IFRS 10 §31"],"exercise":{"prompt":{"fr":"","en":"An investment entity obtains control of another entity. How does it generally account for its investment in that subsidiary?","es":""},"explanation":{"fr":"","en":"Subject to the exception for a subsidiary providing investment-related services, an investment entity does not consolidate its subsidiaries and does not apply IFRS 3 when it obtains control of another entity; it measures its investment in a subsidiary at fair value through profit or loss under IFRS 9 (IFRS 10, para. 31). Trap: Consolidating the subsidiaries of an investment entity. Rule to remember: Subsidiary of an investment entity: fair value through profit or loss, no consolidation (IFRS 10, para. 31).","es":""},"common_error":{"fr":"","en":"Consolidating the subsidiaries of an investment entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By line-by-line consolidation in consolidated statements, like any parent, since obtaining control requires consolidation whatever the nature of the investor.","es":""},"correct":false,"feedback":{"fr":"","en":"An investment entity does not consolidate its subsidiaries: that is the exception to consolidation (IFRS 10, para. 31). Line-by-line consolidation does not apply to it, except for a subsidiary providing services related to its investments. Rule to remember: The investment entity does not consolidate its investment subsidiaries (IFRS 10, para. 31).","es":""}},{"id":"B","text":{"fr":"","en":"By the equity method, its investments being treated as associates over which it does not exercise effective control.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity method is not the treatment provided: the investment in a subsidiary is measured at fair value through profit or loss under IFRS 9 (IFRS 10, para. 31). Rule to remember: Fair value through profit or loss, not the equity method (IFRS 10, para. 31).","es":""}},{"id":"C","text":{"fr":"","en":"At historical cost, fair value being used at the date of disposal of the subsidiary, when the gain is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Historical cost is not used: the subsidiary is measured at fair value through profit or loss under IFRS 9 (IFRS 10, para. 31). Deferring fair value to disposal would ignore that periodic measurement. Rule to remember: Fair value applies to the investment from the moment control is obtained (IFRS 10, para. 31).","es":""}},{"id":"D","text":{"fr":"","en":"At fair value through profit or loss under IFRS 9, without consolidating the subsidiary or applying IFRS 3, apart from the exception for a subsidiary providing services related to its investments.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000087","standard_id":"IFRS10","concept_ids":["IFRS10.INVESTMENT.REASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000087","tested_point":"QST.IFRS10.000087","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000014","section_id":"rule-reassess"},"references":["IFRS 10 §29"],"exercise":{"prompt":{"fr":"","en":"The Ancre fund, until now an investment entity, decides to stop measuring the performance of its investments at fair value: one of the elements of the definition changes (case data). What must Ancre do about its investment entity status?","es":""},"explanation":{"fr":"","en":"A parent reassesses whether it is an investment entity if facts and circumstances indicate changes to one or more of the three elements of the definition or the typical characteristics (IFRS 10, para. 29). Ancre no longer measures its investments at fair value: one element changes, so reassessment is required. Trap: Not reassessing investment entity status after a change in activity. Rule to remember: Investment entity status is reassessed when the facts change (IFRS 10, para. 29).","es":""},"common_error":{"fr":"","en":"Not reassessing investment entity status after a change in activity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep it, that status being determined once and for all when the fund is set up, whatever happens to its activities.","es":""},"correct":false,"feedback":{"fr":"","en":"Investment entity status is not fixed at set-up: the parent reassesses it when facts indicate changes (IFRS 10, para. 29). Not reassessing after a change in activity is the error to avoid. Rule to remember: A change in facts requires reassessing investment entity status (IFRS 10, para. 29).","es":""}},{"id":"B","text":{"fr":"","en":"Reassess it, since the facts and circumstances indicate a change in one of the elements of the definition.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Wait for the next annual reporting date to consider whether to reassess, no reassessment during the year being provided for.","es":""},"correct":false,"feedback":{"fr":"","en":"The text ties reassessment to changes in facts and circumstances, not to the annual reporting date (IFRS 10, para. 29). Waiting would delay an analysis that the change requires. Rule to remember: Reassessment follows the change in facts (IFRS 10, para. 29).","es":""}},{"id":"D","text":{"fr":"","en":"Lose it immediately and without analysis, any change in an element of the definition causing the status to be lost.","es":""},"correct":false,"feedback":{"fr":"","en":"The change requires reassessing, not concluding: status is re-examined in light of the facts (IFRS 10, para. 29). Losing status without analysis would be an unfounded conclusion. Rule to remember: Reassessing is not concluding that status is lost (IFRS 10, para. 29).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000088","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IFRS3","IFRS10.CONTROL.PRINCIPLE"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000088","tested_point":"QST.IFRS10.000088","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10","IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"Cèdre SA acquires the majority of the voting rights of a business (within the meaning of IFRS 3). Case convention: the three elements of control under IFRS 10 are present. How do the two standards fit together in accounting for this acquisition?","es":""},"explanation":{"fr":"","en":"Control has three elements that must all be present (IFRS 10, para. 7); when the investor obtains control of a business, it applies IFRS 3 (acquirer, acquisition date, measurement). Here, by case convention, the three elements are present: Cèdre applies IFRS 3 to the acquisition. Trap: Applying IFRS 3 without having established control. Rule to remember: IFRS 10 establishes control, IFRS 3 accounts for obtaining it over a business (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Applying IFRS 3 without having established control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 10 on its own covers the accounting for the acquisition, including measurement of the assets and liabilities acquired, IFRS 3 relating to legal mergers.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 10 defines control but does not deal with the acquisition method: obtaining control of a business triggers IFRS 3 (acquirer, acquisition date, measurement) (IFRS 10, para. 7 for the three elements). Rule to remember: Control is defined by IFRS 10, the acquisition is accounted for by IFRS 3 (IFRS 10, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 3 applies first to identify the acquirer, then IFRS 10 decides whether the acquisition leads to consolidation of the acquired business.","es":""},"correct":false,"feedback":{"fr":"","en":"Control, defined by its three elements (IFRS 10, para. 7), comes first: it is obtaining it over a business that triggers IFRS 3. The reverse order would apply IFRS 3 without having established control. Rule to remember: Control is established before IFRS 3 is applied (IFRS 10, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 3 applies to any acquisition of securities of an entity, whether or not it gives control, the definition of control having no effect.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 3 applies when the investor obtains control of a business, not to any acquisition of securities; control, defined by IFRS 10, is the criterion (IFRS 10, para. 7). Rule to remember: No control, no application of IFRS 3 (IFRS 10, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 10 provides the definition of control; obtaining control of a business triggers the application of IFRS 3 (acquirer, acquisition date, measurement).","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000089","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IAS28","IFRS10.LOSS.RETAINED_INTEREST"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000089","tested_point":"QST.IFRS10.000089","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000012","section_id":"rule-steps"},"references":["IFRS 10","IFRS 10 §25"],"exercise":{"prompt":{"fr":"","en":"Orme SA sells part of its holding in Pin SA and loses control; it keeps a 30% interest that gives it significant influence, whose fair value at the date of loss of control is 450,000 (case data). How does it account for the retained interest?","es":""},"explanation":{"fr":"","en":"On loss of control, the parent recognises the fair value of any retained investment, which becomes the initial carrying amount under IFRS 9 or the cost of an associate or a joint venture (IFRS 10, para. 25); here, with significant influence, 450,000 is the cost of the associate, subsequently equity-accounted. Trap: Continuing to consolidate the former subsidiary that has become an associate. Rule to remember: The retained fair value becomes the cost of the associate (IFRS 10, para. 25).","es":""},"common_error":{"fr":"","en":"Continuing to consolidate the former subsidiary that has become an associate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It continues to consolidate Pin line by line to the extent of 30%, by proportionate consolidation of the former subsidiary.","es":""},"correct":false,"feedback":{"fr":"","en":"After loss of control, the parent no longer consolidates the subsidiary: its assets and liabilities are derecognised, and the retained interest follows the equity method if it is an associate (IFRS 10, para. 25). Rule to remember: No more consolidation after loss of control (IFRS 10, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises it at fair value, 450,000, which becomes the cost of an associate subsequently accounted for under the equity method.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It keeps it at its share of Pin's consolidated carrying amount, the equity method starting from that value.","es":""},"correct":false,"feedback":{"fr":"","en":"The retained interest is recognised at fair value, not at its share of the consolidated carrying amount (IFRS 10, para. 25). Taking over the consolidated value as the cost of the associate is the error to avoid. Rule to remember: The cost of the associate is the fair value at the date of loss of control (IFRS 10, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"It recognises it at fair value, then accounts for it under IFRS 9 as a financial asset, significant influence not changing its classification.","es":""},"correct":false,"feedback":{"fr":"","en":"With significant influence, the retained holding becomes an associate, not a financial asset accounted for under IFRS 9 (IFRS 10, para. 25). IFRS 9 applies where there is neither significant influence nor joint control. Rule to remember: Significant influence: equity method; otherwise IFRS 9 (IFRS 10, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000091","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IFRS11","IFRS10.CONTROL.PRINCIPLE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS10.000091","tested_point":"QST.IFRS10.000091","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10","IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"A colleague writes: \"Orme SA controls Hêtre SA alone, but other shareholders also hold voting rights; Orme therefore applies IFRS 11 and treats Hêtre as joint control.\" Case convention: Orme meets the three elements of control. What is the error?","es":""},"explanation":{"fr":"","en":"Control has three elements that must all be present (IFRS 10, para. 7). Joint control is the contractually agreed sharing of control, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control (IFRS 11, para. 7); a party that controls the entity is outside the scope of IFRS 11. Orme controls Hêtre alone, by case convention. Trap: Calling joint control a situation in which one investor controls alone. Rule to remember: An investor that controls the entity falls under IFRS 10, not IFRS 11 (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Calling joint control a situation in which one investor controls alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It overlooks that joint control exists if each party holds exactly the same interest in the entity's capital.","es":""},"correct":false,"feedback":{"fr":"","en":"Joint control does not rest on equal capital interests: it requires a contractual sharing of control and the unanimous consent of the parties on decisions about the relevant activities. Rule to remember: The test for joint control is unanimity, not equal interests (IFRS 11, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"It confuses control and significant influence: Orme has significant influence over Hêtre, which rules out any joint control exercised with other parties.","es":""},"correct":false,"feedback":{"fr":"","en":"The case states that Orme meets the three elements of control (IFRS 10, para. 7): it is therefore not a mere significant influence. Rule to remember: Meeting the three elements of control rules out joint control for that party (IFRS 10, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"It overlooks that joint control requires the unanimous consent of the parties, and that a party that controls the entity is outside the scope of IFRS 11.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It applies IFRS 11 to a listed entity, whereas that standard applies only to unlisted entities.","es":""},"correct":false,"feedback":{"fr":"","en":"Listing does not decide the classification: joint control is a contractual sharing of control with the unanimous consent of the parties, which the presence of other shareholders does not create by itself (IFRS 10, para. 7). Rule to remember: Several shareholders do not make joint control (IFRS 11, para. 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000092","standard_id":"IFRS10","concept_ids":["IFRS10.INTERACTIONS.IFRS12","IFRS10.CONTROL.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS10.000092","tested_point":"QST.IFRS10.000092","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10","IFRS 10 §7"],"exercise":{"prompt":{"fr":"","en":"Which disclosures related to control fall under IFRS 12? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The disclosures on significant judgements in determining control, non-controlling interests, unconsolidated structured entities and investment entities are in IFRS 12; the judgements concern in particular the three elements of control (IFRS 10, para. 7). Intragroup eliminations, by contrast, are consolidation procedures. Trap: Omitting the disclosures on significant judgements about control. Rule to remember: IFRS 10 establishes control and the procedures, IFRS 12 carries the disclosures (IFRS 10, para. 7).","es":""},"common_error":{"fr":"","en":"Omitting the disclosures on significant judgements about control.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Information about unconsolidated structured entities.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Information about investment entities.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Information about non-controlling interests.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The detail of the calculation of unrealised profit on remaining intragroup inventory.","es":""},"correct":false,"feedback":{"fr":"","en":"Calculating unrealised profit is consolidation work, not an IFRS 12 disclosure (IFRS 10, para. 7 for the notion of control). Rule to remember: Eliminations are IFRS 10 procedures, disclosures are in IFRS 12 (IFRS 10, para. 7).","es":""}},{"id":"E","text":{"fr":"","en":"The entries eliminating intragroup balances made in the consolidation work.","es":""},"correct":false,"feedback":{"fr":"","en":"Intragroup elimination entries belong to the consolidation procedures of IFRS 10, not to the disclosures of IFRS 12 (IFRS 10, para. 7 for the notion of control). Rule to remember: Consolidation procedures and disclosures are two distinct topics (IFRS 10, para. 7).","es":""}},{"id":"F","text":{"fr":"","en":"The significant judgements made in determining control.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000093","standard_id":"IFRS10","concept_ids":["IFRS10.CONTROL.PRINCIPLE"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000093","tested_point":"QST.IFRS10.000093","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000002","section_id":"rule-three"},"references":["IFRS 10 §6"],"exercise":{"prompt":{"fr":"","en":"Borealis SA has power over Zeta SAS (case data). However, it is not exposed to, and has no rights to, any variable returns from Zeta: it receives no remuneration or dividend and has no other economic link with Zeta (case facts). Does Borealis control Zeta under IFRS 10?","es":""},"explanation":{"fr":"","en":"An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (IFRS 10, para. 6). Power and the absence of any variable return are case data: one of the elements is missing, so there is no control. Trap: equating power with control. Rule to remember: power, variable returns and the link between them, all present.","es":""},"common_error":{"fr":"","en":"Concluding on control from power over the investee alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, power over the investee is enough to establish control.","es":""},"correct":false,"feedback":{"fr":"","en":"Power alone is not enough: exposure or rights to variable returns and the ability to affect them are also needed (IFRS 10, para. 6).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, provided Borealis holds more than half of Zeta's voting rights.","es":""},"correct":false,"feedback":{"fr":"","en":"The case is not about voting rights, and even established power is not enough without exposure to variable returns (IFRS 10, para. 6).","es":""}},{"id":"C","text":{"fr":"","en":"No: control also requires exposure, or rights, to variable returns, which the power makes it possible to affect.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No, because only an investor holding all the share capital controls an entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Control does not require holding all the share capital; it rests on power, variable returns and the link between them (IFRS 10, para. 6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS10.000094","standard_id":"IFRS10","concept_ids":["IFRS10.AGENCY.REMUNERATION_EXPOSURE","IFRS10.AGENCY.PRINCIPAL_VS_AGENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS10.000094","tested_point":"QST.IFRS10.000094","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS10","lesson_id":"LS.IFRS10.000007","section_id":"rule-agent"},"references":["IFRS 10 §B69","IFRS 10 §18"],"exercise":{"prompt":{"fr":"","en":"Aurora Gestion exercises decision-making rights delegated to it over a fund. Its remuneration is commensurate with the services provided and the remuneration agreement includes only terms, conditions and amounts customarily present for similar services negotiated on an arm's length basis (case facts). What can be concluded under IFRS 10?","es":""},"explanation":{"fr":"","en":"A decision maker determines whether it is a principal or an agent; if it is an agent, it does not control the investee when it exercises the decision-making rights delegated to it (IFRS 10, para. 18). In this analysis, it considers in particular whether its remuneration is commensurate with the services provided and whether the agreement includes only customary terms negotiated on an arm's length basis: it cannot be an agent unless both conditions are met, although meeting them is not, on its own, sufficient to conclude that it is an agent (IFRS 10, paras. B69 and B70). The features of the remuneration are case facts; the final conclusion is a matter of professional judgement on all the factors. Trap: treating a necessary condition as sufficient. Rule to remember: commensurate and customary remuneration, necessary but not sufficient.","es":""},"common_error":{"fr":"","en":"Concluding that a manager is an agent solely because its remuneration is customary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Aurora is an agent: these two conditions are enough, on their own, to conclude so.","es":""},"correct":false,"feedback":{"fr":"","en":"These conditions are necessary but not sufficient, on their own, to conclude that Aurora is an agent (IFRS 10, para. B69).","es":""}},{"id":"B","text":{"fr":"","en":"These two conditions are necessary for Aurora to be an agent, but not sufficient on their own: the principal / agent analysis continues.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Aurora controls the fund, since it exercises the decision-making rights.","es":""},"correct":false,"feedback":{"fr":"","en":"Exercising decision-making rights is not enough: an agent exercising delegated rights does not control the investee (IFRS 10, para. 18).","es":""}},{"id":"D","text":{"fr":"","en":"Remuneration has no bearing on the principal / agent analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"Remuneration is one of the factors considered in determining whether the decision maker is a principal or an agent (IFRS 10, para. B69).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS10.000001":"Who must consolidate? The requirement and its exemption — Understand: seeing the group, not each company","LX.IFRS10.000002":"Who must consolidate? The requirement and its exemption — Example: a chain of three companies","LX.IFRS10.000003":"Who must consolidate? The requirement and its exemption — The rule: the exemption of a parent held within a wider group","LX.IFRS10.000004":"Who must consolidate? The requirement and its exemption — The rule: the exemption of a parent held within a wider group","LX.IFRS10.000005":"Who must consolidate? The requirement and its exemption — Points of attention","LX.IFRS10.000006":"Who must consolidate? The requirement and its exemption — The rule: the exemption of a parent held within a wider group","LX.IFRS10.000007":"Who must consolidate? The requirement and its exemption — Example: can Dunmar be relieved from consolidating?","LX.IFRS10.000008":"Control: three elements, all required — Understand: three questions, three \"yes\" answers","LX.IFRS10.000009":"Control: three elements, all required — The rule: three elements, all present","LX.IFRS10.000010":"Control: three elements, all required — The rule: three elements, all present","LX.IFRS10.000011":"Control: three elements, all required — Points of attention","LX.IFRS10.000012":"Control: three elements, all required — Example: two situations, two conclusions","LX.IFRS10.000013":"Control: three elements, all required — Control is reassessed when facts change","LX.IFRS10.000014":"Control: three elements, all required — Link with IFRS 3: obtaining control of a business","LX.IFRS10.000015":"Control: three elements, all required — Link with IFRS 11: control or joint control?","LX.IFRS10.000016":"Power: existing rights over the relevant activities — Understand: holding the wheel without turning it","LX.IFRS10.000017":"Power: existing rights over the relevant activities — The rule: existing rights, a current ability","LX.IFRS10.000018":"Power: existing rights over the relevant activities — The rule: existing rights, a current ability","LX.IFRS10.000019":"Power: existing rights over the relevant activities — Relevant activities: those that make returns vary","LX.IFRS10.000020":"Power: existing rights over the relevant activities — Several decisions, several parties, several moments","LX.IFRS10.000021":"Power: existing rights over the relevant activities — Points of attention","LX.IFRS10.000022":"Power: existing rights over the relevant activities — The rule: existing rights, a current ability","LX.IFRS10.000023":"Substantive rights and protective rights — The rule: the practical ability to exercise","LX.IFRS10.000024":"Substantive rights and protective rights — The rule: the practical ability to exercise","LX.IFRS10.000025":"Substantive rights and protective rights — Protective rights: defending without directing","LX.IFRS10.000026":"Substantive rights and protective rights — Example: a lender and a breach of covenant","LX.IFRS10.000027":"Substantive rights and protective rights — The rule: the practical ability to exercise","LX.IFRS10.000028":"Substantive rights and protective rights — Example: two removal rights","LX.IFRS10.000029":"Substantive rights and protective rights — Points of attention","LX.IFRS10.000030":"Power without a majority: de facto control, potential rights, structured entities — The rule: size, dispersion and past voting","LX.IFRS10.000031":"Power without a majority: de facto control, potential rights, structured entities — The rule: size, dispersion and past voting","LX.IFRS10.000032":"Power without a majority: de facto control, potential rights, structured entities — Potential voting rights: options, warrants, convertibles","LX.IFRS10.000033":"Power without a majority: de facto control, potential rights, structured entities — Potential voting rights: options, warrants, convertibles","LX.IFRS10.000034":"Power without a majority: de facto control, potential rights, structured entities — Structured entities: power comes from contracts","LX.IFRS10.000035":"Power without a majority: de facto control, potential rights, structured entities — Structured entities: power comes from contracts","LX.IFRS10.000036":"Power without a majority: de facto control, potential rights, structured entities — Example: 38% against dispersed shareholders","LX.IFRS10.000037":"Power without a majority: de facto control, potential rights, structured entities — Potential voting rights: options, warrants, convertibles","LX.IFRS10.000038":"Variable returns and the link between power and returns — Understand: what the investor can win or lose","LX.IFRS10.000039":"Variable returns and the link between power and returns — The rule: returns that vary with performance","LX.IFRS10.000040":"Variable returns and the link between power and returns — Worked example: a share of results that changes sign","LX.IFRS10.000041":"Variable returns and the link between power and returns — The rule: returns that vary with performance","LX.IFRS10.000042":"Variable returns and the link between power and returns — The link: using power to affect one's own returns","LX.IFRS10.000043":"Variable returns and the link between power and returns — The link: using power to affect one's own returns","LX.IFRS10.000044":"Principal or agent: deciding for one's own account or for others — Understand: the estate agent does not become the owner","LX.IFRS10.000045":"Principal or agent: deciding for one's own account or for others — The rule: a preliminary question before any conclusion on control","LX.IFRS10.000046":"Principal or agent: deciding for one's own account or for others — The factors of the analysis, weighed together","LX.IFRS10.000047":"Principal or agent: deciding for one's own account or for others — The factors of the analysis, weighed together","LX.IFRS10.000048":"Principal or agent: deciding for one's own account or for others — Removal rights held by others","LX.IFRS10.000049":"Principal or agent: deciding for one's own account or for others — Remuneration and exposure to other interests","LX.IFRS10.000050":"Principal or agent: deciding for one's own account or for others — Points of attention","LX.IFRS10.000051":"Principal or agent: deciding for one's own account or for others — The rule: a preliminary question before any conclusion on control","LX.IFRS10.000052":"Principal or agent: deciding for one's own account or for others — Fund managers and single-investor funds","LX.IFRS10.000053":"Principal or agent: deciding for one's own account or for others — Fund managers and single-investor funds","LX.IFRS10.000054":"Consolidating: combining line by line and eliminating the investment — The rule: the three operations of consolidation","LX.IFRS10.000055":"Consolidating: combining line by line and eliminating the investment — Worked example: Arvane and its 80% subsidiary Belmor","LX.IFRS10.000056":"Consolidating: combining line by line and eliminating the investment — The elimination entry","LX.IFRS10.000057":"Consolidating: combining line by line and eliminating the investment — The rule: the three operations of consolidation","LX.IFRS10.000058":"Consolidating: combining line by line and eliminating the investment — Worked example: two inventory cost formulas","LX.IFRS10.000059":"Consolidating: combining line by line and eliminating the investment — Uniform accounting policies","LX.IFRS10.000060":"Consolidating: combining line by line and eliminating the investment — Reporting dates: a common date, otherwise an adjustment","LX.IFRS10.000061":"Consolidating: combining line by line and eliminating the investment — Reporting dates: a common date, otherwise an adjustment","LX.IFRS10.000062":"Consolidating: combining line by line and eliminating the investment — Uniform accounting policies","LX.IFRS10.000063":"Intragroup transactions and unrealised profits — Understand: selling to oneself creates no profit","LX.IFRS10.000064":"Intragroup transactions and unrealised profits — Worked example: inventory still held","LX.IFRS10.000065":"Intragroup transactions and unrealised profits — The elimination entries","LX.IFRS10.000066":"Intragroup transactions and unrealised profits — The elimination entries","LX.IFRS10.000067":"Intragroup transactions and unrealised profits — The rule: four families of eliminations","LX.IFRS10.000068":"Intragroup transactions and unrealised profits — The rule: four families of eliminations","LX.IFRS10.000069":"Intragroup transactions and unrealised profits — Points of attention","LX.IFRS10.000070":"Intragroup transactions and unrealised profits — Why only on the remaining assets?","LX.IFRS10.000071":"Non-controlling interests: presentation, attribution, deficit balance — Understand: consolidating 100%, owning 80%","LX.IFRS10.000072":"Non-controlling interests: presentation, attribution, deficit balance — Worked example: Belmor's year","LX.IFRS10.000073":"Non-controlling interests: presentation, attribution, deficit balance — Worked example: Belmor's year","LX.IFRS10.000074":"Non-controlling interests: presentation, attribution, deficit balance — The attribution entry","LX.IFRS10.000075":"Non-controlling interests: presentation, attribution, deficit balance — Worked example: Cormane loses money","LX.IFRS10.000076":"Non-controlling interests: presentation, attribution, deficit balance — The deficit balance: no floor at zero","LX.IFRS10.000077":"Non-controlling interests: presentation, attribution, deficit balance — The rule: a split according to current ownership interests","LX.IFRS10.000078":"Non-controlling interests: presentation, attribution, deficit balance — Worked example: a profit before and after preference","LX.IFRS10.000079":"Non-controlling interests: presentation, attribution, deficit balance — Cumulative preference shares held by third parties","LX.IFRS10.000080":"Buying or selling shares without losing control: an equity transaction — Understand: owners trading shares among themselves","LX.IFRS10.000081":"Buying or selling shares without losing control: an equity transaction — Worked example: Arvane buys 10 points from the third parties","LX.IFRS10.000082":"Buying or selling shares without losing control: an equity transaction — The entry for a purchase from the third parties","LX.IFRS10.000083":"Buying or selling shares without losing control: an equity transaction — Worked example: a partial disposal without loss of control","LX.IFRS10.000084":"Buying or selling shares without losing control: an equity transaction — The entry for a partial disposal","LX.IFRS10.000085":"Buying or selling shares without losing control: an equity transaction — The rule: adjust the interests, the difference goes to equity","LX.IFRS10.000086":"Buying or selling shares without losing control: an equity transaction — Points of attention","LX.IFRS10.000087":"Buying or selling shares without losing control: an equity transaction — What the standard does not say","LX.IFRS10.000088":"Buying or selling shares without losing control: an equity transaction — What the standard does not say","LX.IFRS10.000089":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The formula for the gain or loss","LX.IFRS10.000090":"Losing control: derecognising, remeasuring the retained interest, recognising the result — Worked example: Tolven sells 60 points of Ulbrac","LX.IFRS10.000091":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The loss-of-control entry","LX.IFRS10.000092":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The formula for the gain or loss","LX.IFRS10.000093":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The loss-of-control entry","LX.IFRS10.000094":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The rule: the steps of the accounting","LX.IFRS10.000095":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The part of the gain due to remeasuring the retained interest","LX.IFRS10.000096":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Worked example: a translation difference and a revaluation surplus","LX.IFRS10.000097":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Worked example: a translation difference and a revaluation surplus","LX.IFRS10.000098":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — The rule: reclassify or transfer, depending on the applicable IFRS","LX.IFRS10.000099":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Several arrangements: a single transaction?","LX.IFRS10.000100":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Points of attention","LX.IFRS10.000101":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Link with IAS 28: the retained interest becomes an associate","LX.IFRS10.000102":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Link with IFRS 9: the retained interest without significant influence","LX.IFRS10.000103":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Sale to an associate: the deferred 2014 amendments","LX.IFRS10.000104":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Sale to an associate: the deferred 2014 amendments","LX.IFRS10.000105":"Investment entities: measuring at fair value instead of consolidating — The definition: three elements","LX.IFRS10.000106":"Investment entities: measuring at fair value instead of consolidating — Typical characteristics: a guide, not a condition","LX.IFRS10.000107":"Investment entities: measuring at fair value instead of consolidating — Typical characteristics: a guide, not a condition","LX.IFRS10.000108":"Investment entities: measuring at fair value instead of consolidating — The exception: fair value through profit or loss","LX.IFRS10.000109":"Investment entities: measuring at fair value instead of consolidating — Worked example: the Orion fund","LX.IFRS10.000110":"Investment entities: measuring at fair value instead of consolidating — The exception: fair value through profit or loss","LX.IFRS10.000111":"Investment entities: measuring at fair value instead of consolidating — Reassessing investment entity status","LX.IFRS10.000112":"Investment entities: measuring at fair value instead of consolidating — Link with IFRS 12: the disclosures","LX.IFRS10.000113":"Investment entities: measuring at fair value instead of consolidating — Professional judgment: concluding on investment entity status","QST.IFRS10.000001":"Who must consolidate? The requirement and its exemption — Understand: seeing the group, not each company","QST.IFRS10.000002":"Who must consolidate? The requirement and its exemption — Understand: seeing the group, not each company","QST.IFRS10.000003":"Who must consolidate? The requirement and its exemption — The rule: the exemption of a parent held within a wider group","QST.IFRS10.000004":"Who must consolidate? The requirement and its exemption — The rule: the exemption of a parent held within a wider group","QST.IFRS10.000005":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000006":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000007":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000008":"Control: three elements, all required — Control is reassessed when facts change","QST.IFRS10.000010":"Power: existing rights over the relevant activities — The rule: existing rights, a current ability","QST.IFRS10.000011":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000012":"Power: existing rights over the relevant activities — The rule: existing rights, a current ability","QST.IFRS10.000013":"Power: existing rights over the relevant activities — Relevant activities: those that make returns vary","QST.IFRS10.000014":"Power: existing rights over the relevant activities — Relevant activities: those that make returns vary","QST.IFRS10.000016":"Substantive rights and protective rights — The rule: the practical ability to exercise","QST.IFRS10.000017":"Substantive rights and protective rights — The rule: the practical ability to exercise","QST.IFRS10.000019":"Substantive rights and protective rights — Protective rights: defending without directing","QST.IFRS10.000020":"Substantive rights and protective rights — Protective rights: defending without directing","QST.IFRS10.000021":"Substantive rights and protective rights — Protective rights: defending without directing","QST.IFRS10.000022":"Power without a majority: de facto control, potential rights, structured entities — The rule: size, dispersion and past voting","QST.IFRS10.000024":"Power without a majority: de facto control, potential rights, structured entities — Potential voting rights: options, warrants, convertibles","QST.IFRS10.000025":"Power without a majority: de facto control, potential rights, structured entities — Potential voting rights: options, warrants, convertibles","QST.IFRS10.000026":"Power without a majority: de facto control, potential rights, structured entities — Structured entities: power comes from contracts","QST.IFRS10.000027":"Power without a majority: de facto control, potential rights, structured entities — Structured entities: power comes from contracts","QST.IFRS10.000028":"Variable returns and the link between power and returns — The rule: returns that vary with performance","QST.IFRS10.000029":"Variable returns and the link between power and returns — The rule: returns that vary with performance","QST.IFRS10.000030":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000031":"Variable returns and the link between power and returns — The link: using power to affect one's own returns","QST.IFRS10.000032":"Variable returns and the link between power and returns — The link: using power to affect one's own returns","QST.IFRS10.000034":"Principal or agent: deciding for one's own account or for others — The rule: a preliminary question before any conclusion on control","QST.IFRS10.000035":"Principal or agent: deciding for one's own account or for others — The rule: a preliminary question before any conclusion on control","QST.IFRS10.000036":"Principal or agent: deciding for one's own account or for others — The rule: a preliminary question before any conclusion on control","QST.IFRS10.000037":"Principal or agent: deciding for one's own account or for others — The factors of the analysis, weighed together","QST.IFRS10.000039":"Principal or agent: deciding for one's own account or for others — Removal rights held by others","QST.IFRS10.000040":"Principal or agent: deciding for one's own account or for others — Removal rights held by others","QST.IFRS10.000041":"Principal or agent: deciding for one's own account or for others — The factors of the analysis, weighed together","QST.IFRS10.000042":"Principal or agent: deciding for one's own account or for others — The factors of the analysis, weighed together","QST.IFRS10.000044":"Consolidating: combining line by line and eliminating the investment — The rule: the three operations of consolidation","QST.IFRS10.000045":"Consolidating: combining line by line and eliminating the investment — The rule: the three operations of consolidation","QST.IFRS10.000047":"Consolidating: combining line by line and eliminating the investment — Uniform accounting policies","QST.IFRS10.000048":"Consolidating: combining line by line and eliminating the investment — Uniform accounting policies","QST.IFRS10.000050":"Intragroup transactions and unrealised profits — The rule: four families of eliminations","QST.IFRS10.000052":"Intragroup transactions and unrealised profits — The rule: four families of eliminations","QST.IFRS10.000053":"Consolidating: combining line by line and eliminating the investment — Reporting dates: a common date, otherwise an adjustment","QST.IFRS10.000055":"Non-controlling interests: presentation, attribution, deficit balance — Understand: consolidating 100%, owning 80%","QST.IFRS10.000056":"Non-controlling interests: presentation, attribution, deficit balance — Understand: consolidating 100%, owning 80%","QST.IFRS10.000057":"Non-controlling interests: presentation, attribution, deficit balance — Understand: consolidating 100%, owning 80%","QST.IFRS10.000058":"Non-controlling interests: presentation, attribution, deficit balance — The rule: a split according to current ownership interests","QST.IFRS10.000060":"Non-controlling interests: presentation, attribution, deficit balance — The rule: a split according to current ownership interests","QST.IFRS10.000061":"Non-controlling interests: presentation, attribution, deficit balance — The deficit balance: no floor at zero","QST.IFRS10.000063":"Non-controlling interests: presentation, attribution, deficit balance — The deficit balance: no floor at zero","QST.IFRS10.000064":"Non-controlling interests: presentation, attribution, deficit balance — Cumulative preference shares held by third parties","QST.IFRS10.000065":"Buying or selling shares without losing control: an equity transaction — The rule: adjust the interests, the difference goes to equity","QST.IFRS10.000067":"Buying or selling shares without losing control: an equity transaction — The rule: adjust the interests, the difference goes to equity","QST.IFRS10.000069":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The rule: the steps of the accounting","QST.IFRS10.000071":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The rule: the steps of the accounting","QST.IFRS10.000072":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The rule: the steps of the accounting","QST.IFRS10.000074":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The rule: the steps of the accounting","QST.IFRS10.000075":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The formula for the gain or loss","QST.IFRS10.000077":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The formula for the gain or loss","QST.IFRS10.000078":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — The rule: reclassify or transfer, depending on the applicable IFRS","QST.IFRS10.000080":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — The rule: reclassify or transfer, depending on the applicable IFRS","QST.IFRS10.000081":"Loss of control: other comprehensive income, multiple arrangements and the retained interest — Several arrangements: a single transaction?","QST.IFRS10.000084":"Investment entities: measuring at fair value instead of consolidating — The definition: three elements","QST.IFRS10.000085":"Investment entities: measuring at fair value instead of consolidating — Typical characteristics: a guide, not a condition","QST.IFRS10.000086":"Investment entities: measuring at fair value instead of consolidating — The exception: fair value through profit or loss","QST.IFRS10.000087":"Investment entities: measuring at fair value instead of consolidating — Reassessing investment entity status","QST.IFRS10.000088":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000089":"Losing control: derecognising, remeasuring the retained interest, recognising the result — The rule: the steps of the accounting","QST.IFRS10.000091":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000092":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000093":"Control: three elements, all required — The rule: three elements, all present","QST.IFRS10.000094":"Principal or agent: deciding for one's own account or for others — The rule: a preliminary question before any conclusion on control"}}