CERTYNEX IFRS ACADEMY

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?

Érable SA does not control Saule SA: control also requires it to hold the majority of Saule's capital.

Érable SA does not control Saule SA: variable dividends are not an element of control.

Érable SA controls Saule SA: the three elements of control are present.

Érable SA controls Saule SA: exposure to returns establishes control, the assessment of power being incidental.