BU487 Lecture Notes - Lecture 3: Identifiability, Earnings Before Interest And Taxes, Book Value

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12 Aug 2018
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For control: control exists if company a has the power to direct the activities of company b for its return; ownership of voting shares equal or higher than 50%(ifrs10) For significant influence: significant influence exists when company a parti(cid:272)ipates i(cid:374) (cid:272)o(cid:373)pa(cid:374)(cid:455) b"s strategi(cid:272), operati(cid:374)g, a(cid:374)d fi(cid:374)a(cid:374)(cid:272)i(cid:374)g policies. Ownership of voting shares between 20%-50% (ias 28) Control- right o(cid:448)er the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:271)usi(cid:374)ess a(cid:272)ti(cid:448)ities; (cid:449)a(cid:374)t to (cid:373)ake the important decisions to make sure you get what you want. Significant influence- (cid:272)a(cid:374)"t (cid:373)ake de(cid:272)isio(cid:374)s for the(cid:373), (cid:271)ut (cid:272)a(cid:374) i(cid:374)flue(cid:374)(cid:272)e their own decision-making: non-strategic investments. Investments measured at fair value: fair value through profit and loss (fvtpl) investments. Include investments held for short-term trading and any other investments the reporting entity wishes to designate as fvtpl. Classified as current assets since they will be sold within one year. Unrealized holding gains/losses (& dividends: recorded in net income. Investment carrying amount is adjusted to current fair value: fair value through oci (fvtoci) investments.

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