And nothing is said about influence, assume financial assets or associates?
it won’t happen like that. the % is largely irrelevant, it’s whether significant influence and/or control is present. In most circumstance 5% is not significant influence, yet it can be. The 0-20% is a rule of thumb and they aren’t going to test that you recognize an inequality on something that’s an estimate.
Hmm, I do agree that % is largely irrelevant, but I disagree on that I think its very possible for them to just say 20% and not mention anything about control. In which case we should use our professional judgement, 20% in most cases would imply significant influence but not control. Therefore Equity method.
it will be stated for influence and control, or it will be invalid.
20 percent is investment in associate however if no BOD influential role - > it is passive thus financial assets. If less than 20 percent, then financial assets however if they have a BOD seat = > influential then treat them as investment in associate, ie: non current.
@Bilal you mean proportionate(IFRS) or equity method right? But does BOD seat mean control and consolidation re: less of %ownership?
yea that’s what i meant If < 20 % and has influential effect as in BOD seat, then its investment in subsidiary and vice versa. If has 25% however no BOD seat and cant have influential effect, then its financial assets.