Need to Know: IFRS 10 - Consolidated Financial ... - BDO Canada

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58 IFRS 10 Consolidated Financial StatementsJoint venture(IFRS 11)Joint venturer(IFRS 11)Key management personnel(IAS 24)Non-controlling interest(IFRS 10)Parent(IFRS 10)Party to a joint arrangement(IFRS 11)Power(IFRS 10)Protective rights(IFRS 10)Related party(IAS 24)A joint arrangement whereby the parties that have joint control of thearrangement have rights to the net assets of the arrangement.A party to a joint venture that has joint control of that joint venture.Key management personnel are those persons having authority andresponsibility for planning, directing and controlling the activities of the entity,directly or indirectly, including any director (whether executive or otherwise) ofthat entity.Equity in a subsidiary not attributable, directly or indirectly, to a parent.An entity that controls one or more entities.An entity that participates in a joint arrangement, regardless of whether thatentity has joint control of the arrangement.Existing rights that give the current ability to direct the relevant activities.Rights designed to protect the interest of the party holding those rights withoutgiving that party power over the entity to which those rights relate.A related party is a person or entity that is related to the entity that is preparingits financial statements (referred to as the ‘reporting entity’):(a) A person or a close member of that person’s family is related to a reportingentity if that person:(i) Has control or joint control of the reporting entity(ii) Has significant influence over the reporting entity(iii) Is a member of the key management personnel of the reporting entityor of a parent of the reporting entity.(b) An entity is related to a reporting entity if any of the following conditionsapplies:(i)(ii)(iii)(iv)(v)(vi)(vii)The entity and the reporting entity are members of the same group(which means that each parent, subsidiary and fellow subsidiary isrelated to the others)One entity is an associate or joint venture of the other entity (or anassociate or joint venture of a member of a group of which the otherentity is a member)Both entities are joint ventures of the same third partyOne entity is a joint venture of a third entity and the other entity is anassociate of the third entityThe entity is a post-employment benefit plan for the benefit ofemployees of either the reporting entity or an entity related tothe reporting entity. If the reporting entity is itself such a plan, thesponsoring employers are also related to the reporting entityThe entity is controlled or jointly controlled by a person identified in (a)A person identified in (a)(i) has significant influence over the entity oris a member of the key management personnel of the entity (or of aparent of the entity).
IFRS 10 Consolidated Financial Statements59Relevant activities(IFRS 10)Removal rights(IFRS 10)Separate financial statements(IAS 27(2011))Separate vehicle(IFRS 11)Significant influence(IAS 28(2011))Structured entity(IFRS 12)Subsidiary(IFRS 10)For the purpose of this IFRS, relevant activities are activities of the investee thatsignificantly affect the investee’s returns.Rights to deprive the decision maker of its decision-making authority.Separate financial statements are those presented by a parent (ie an investorwith control of a subsidiary) or an investor with joint control of, or significantinfluence over, an investee, in which the investments are accounted for at cost orin accordance with IFRS 9 Financial Instruments.A separately identifiable financial structure, including separate legal entities orentities recognised by statute, regardless of whether those entities have a legalpersonality.Significant influence is the power to participate in the financial and operatingpolicy decisions of the investee but is not control or joint control of thosepolicies.An entity that has been designed so that voting or similar rights are not thedominant factor in deciding who controls the entity, such as when any votingrights relate to administrative tasks only and the relevant activities are directedby means of contractual arrangements.An entity that is controlled by another entity.
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Need to Know: IFRS 10 - Consolidated Financial ... - BDO Canada

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