ACCO 420 Lecture Notes - Lecture 2: Reverse Takeover, Equity Method, Chalet

• School: Concordia University
• Department: Accountancy
• Course: ACCO 420
• Professor: Diane Henri

Document Summary

Public company ifrs required: presumed significant influence since greater than 20% and less than 50%. A (cid:373)e(cid:373)(cid:271)er of the bod has (cid:1007)5% plus (cid:272)o(cid:373)pa(cid:374)y s (cid:1006)5% (cid:449)ould (cid:271)e greater tha(cid:374) 50%. Armstrong is not necessarily a majority holder in falcon. Conclusion: likely some control exists; significant influence; associate; equity method: 30% - presumption of significant influence. This owner opposed the investment bid of falcon. Conclusion: financial asset; fv on the b/s, this is not hft and therefore it would be possible to take the election to put fv through oci: presumption 15% is that it is a financial assets. Falcon is providing a guarantee on significant assets. Conclusion: likely significant influence; associate; equity method: presumption of control. Clearly falcon has power over the activities since the only asset, the chalet, is used by falcon. There is no decision to be made by others. Conclusion: parent/subsidiary relationship; consolidation: presumption is that it is not an investment.