CERTYNEX IFRS ACADEMY

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?

The total capital invested in the investees, compared with its own equity.

The assessment of its control over each investee, whatever the nature of its involvement with it.

The legal form of the securities held, which must be ordinary shares for parent status to exist.

The number of investees, parent status arising from the second holding onwards.