CERTYNEX IFRS ACADEMY

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?

It is taken into account with the other rights in assessing power, because it is substantive.

It is set aside until exercised, the voting rights actually held being those that count towards power.

It is counted as if already exercised, with no need to examine whether it is substantive.

It is taken into account if Cèdre's management intends to exercise it, whatever its exercise conditions.