CERTYNEX IFRS ACADEMY

Borealis SA has power over Zeta SAS (case data). However, it is not exposed to, and has no rights to, any variable returns from Zeta: it receives no remuneration or dividend and has no other economic link with Zeta (case facts). Does Borealis control Zeta under IFRS 10?

Yes, power over the investee is enough to establish control.

Yes, provided Borealis holds more than half of Zeta's voting rights.

No: control also requires exposure, or rights, to variable returns, which the power makes it possible to affect.

No, because only an investor holding all the share capital controls an entity.