- 5 Marks
CR – Mar 2023 – L3 – Q4b – Business combinations and consolidation Series
Explanation of protective rights under IFRS 10 and examples of situations where voting or contractual rights may be considered protective.
Question
Whether an investor’s rights in an entity are voting or contractual under IFRS 10: Consolidated Financial Statements, these rights should be carefully evaluated to find out whether they are mere protective or actually confer power over the investee.
Required:
Explain protective rights, providing FOUR (4) instances where voting or contractual rights could be regarded as protective. (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Consolidation, Contractual Rights, IFRS 10, Investor rights, Protective rights, Voting rights
- Level: Level 3
- Topic: Business combinations and consolidation
- Series: MAR 2023
