CERTYNEX IFRS ACADEMY

Boa SA is a fund whose units carry a voting right proportional to contributions, exercised at a meeting; the meeting decides the investment policy and the other relevant activities, and no contractual arrangement directs those activities in its place (case facts). How is Boa characterised under IFRS 12?

It is a structured entity, because any investment fund, whatever its governance, falls into that category within the meaning of the standard.

It is not a structured entity: voting rights are the dominant factor in deciding who controls it.

It is a structured entity, because its main activity is to invest funds on behalf of its unit holders.

It is a structured entity because it has fewer than ten unit holders, which limits the effect of their voting rights.