CERTYNEX IFRS ACADEMY

Titri is a securitisation vehicle: its voting rights relate to administrative tasks only, and its relevant activities are directed by contractual arrangements (case facts). How is Titri characterised under IFRS 12?

Not a structured entity, because any entity with voting rights is directed by their holders, whatever the nature of those rights.

An investment entity, a securitisation vehicle being so characterised by the standard for all disclosure purposes.

An ordinary subsidiary, the contractual arrangements that direct its relevant activities not changing how control of it is assessed.

A structured entity: it is designed so that voting rights are not the dominant factor in deciding who controls it.