CERTYNEX IFRS ACADEMY

Sextant SA manages a fund for a fee commensurate with the services provided, which includes only terms customary for such services. Sextant also holds a small interest in the fund (case data). What can be concluded?

Sextant is an agent: remuneration commensurate with the services provided is enough to establish that role, whatever its decision-making authority and the rights of the other parties.

Sextant is a principal: holding an interest in the fund is enough to establish that it acts on its own behalf and not for others.

Sextant is a principal: customary terms in its remuneration are an indication that it controls the fund and acts on its own behalf.

These elements are consistent with an agent role, but the conclusion results from the overall analysis of the factors, none of them being decisive by itself.