Where the investor (the entity which acquired the shareholding in another entity) exercises some form of control over the investee, the investor is the parent of the investee, which is called its subsidiary.
In terms of IRS 3 Business combinations which is the correct option regarding control:
LINDI LEGODI
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)UNTING 202251ACC621A)
( A parent may control an investee (subsidiary) regardless of the percentage interest held by the investor in that investee.
(in) An investor controls an investee when it has power over the investee
(in) An investor has power over an investee when it has existing rights that give it the current ability to direct the relevant activities of the investee.
(iv) An investor has hower over an investee when it has e exposure (or rights) to variable returns through its relationship with the investee
(v)An investee may be controlled more than one investor at any given time.
Select one:
O a. (), (it), (ill) & (iV)
b. (0), (i), (I) & (v)
O c. (1) & (1)
O d. 0), (ill) & (iv)