| Definition Of Control Under IAS 27 |
| 1. IAS 27 defines control as “ the power to govern the financial and operating policies of an enterprise so as to derive benefits from its activities” |
| 2. Control is presumed to exist when the investor owns, directly or indirectly more than one half of the voting power of an investee. |
| 3. IAS 27 set out the situations where control is present even though the investor owns less than one half of the voting power of the investee company: |
| (a) power over more than one half of the voting rights by virtue of an agreement with other investors; |
| (b) power to govern the financial and operating policies of the company under statute or an agreement; |
| © power to appoint or remove the majority of the members of the board of directors or equivalent governing body; |
| (d) power to cast the majority of votes at meetings of the board of directors or equivalent governing body. |