CERTYNEX IFRS ACADEMY

Alba SA holds interests in three entities. In Brise SA, it has significant influence without control or joint control. In Cime SA, it shares control with another party, and both parties have rights to the net assets. In Dune SA, it has control. How is Brise SA classified for Alba?

A subsidiary, since significant influence is a form of control exercised over the investee.

An associate, accounted for under the equity method.

A joint venture, since significant influence gives Alba rights to the net assets of Brise.

A simple financial investment, significant influence not changing the classification of the holding.