CERTYNEX IFRS ACADEMY

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?

Saule has no variable return in Tilleul, a dividend depending on profit not being a return for the purposes of the analysis of control.

Saule is exposed to variable returns, positive or negative, which are one element of control without being enough to conclude that Saule controls Tilleul.

Saule is exposed to variable returns, which by itself establishes that it controls Tilleul, whatever its rights.

Saule is exposed to variable returns through the dividend, but the possible loss on the holding is not one.