Unit 11 - Grp Rep - Consol Fin Stat

2 i investments in equities for an economic group of

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Unformatted text preview: 7 (2011)]. 2 (I) Investments in Equities for an Economic Group of Entities • The requirement of HKFRS 10 to consolidate a subsidiary will continue effective until control is lost. It has no exception even though the subsidiary is acquired and held exclusively for resale. • An investor controls an investee must have all the followings: • • (a) power over the investee; (b) exposure, or rights, to variable returns from its involvement with the investee; and (c) the ability to use its power over the investee to affect the amount of the investor’s returns. • • Power means existing rights that give the current ability to direct the relevant activities. – Relevant activities are activities of the investee that significantly 3 (I) Investments in Equities for an Economic Group of Entities • If two or more investors collectively control an investee so that they must act together to direct the relevant activities of investee . In such cases, because no investor can direct the activities without the cooperation of the others, no investor individual...
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This document was uploaded on 04/03/2014.

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