CERTYNEX IFRS ACADEMY

Alpha SA holds all the decision rights over the relevant activities of Delta SA. Delta's variable returns, positive and negative, go to Beta SA, a separate party with no power over Delta, and Alpha receives none of them (case data). Does Alpha control Delta?

Yes: power over the relevant activities is enough to establish control, whether the returns go to Alpha or to another party that has no power.

No: Alpha cannot use its power to affect the amount of its own returns; power and returns are held separately.

Yes: control is shared between Alpha and Beta, which together combine power and returns, establishing the control of each over Delta.

Yes: Beta, which receives the returns, is deemed to act on behalf of Alpha, so the link between Alpha's power and returns is established.