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What indicates an investor’s ability to significantly influence the decision-making process of an investee?

What indicates an investor’s ability to significantly influence the decision-making process of an

investee?

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Question added by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator
Date Posted: 2017/03/05
Roshan Chathuranga  Jayatissa
by Roshan Chathuranga Jayatissa , general cashier , The Reef Island Management – Lulu Tourism Company

1. If an investor holds between 20 and 50% of the voting stock of the investee, significant influence is normally assumed and the equity method is applied unless there is evidence to the contrary.

2. Participation in policy making process, including participation in decisions about dividends or other distribution.

3. Representations on the board of directors or equivalent governing body of the investee.

Giovani Caicedo
by Giovani Caicedo , Project Management engineer and Senior Geologist , Geología Continental

The work methodology and its competences in applying them with ease.

AMINA MUZAFFAR
by AMINA MUZAFFAR , Accounts Assistant , Thermal Power Station WAPDA

investor always looks the credibality of investee while investing in its company its long term benifits like company liquidity

 

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

1. Representations on the board of directors or equivalent governing body of the investee

2.Participation in policy making process, including participation in decisions about dividends or other distribution 

3.Provision of essential technical information 

4 Material transactions between the investor and the invested.

5 Interchange of managerial personnel. (IAS)

 

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