Really understanding the concept of control in financial reporting

Join Anton van Wyk CA(SA) and Karen van Wyk CA(SA) to delve into a deep understanding of the concept of “control”, specifically in financial reporting. Control does not automatically arise in any situation, and it is also not to be assumed that the existence of certain situations, for instance ownership of less than 50% of the ordinary shares of an entity, precludes the applicability of control. This is a fascinating concept in financial reporting which is crucial to understand – the reason for this is twofold – control is part of the definition of an asset, and when control over another entity is present, that entity should in most circumstances be consolidated. The International Accounting Standards Board (IASB) not too long ago amended the definition of an asset, which is also revisited in this discussion. The concept of control is investigated in depth from an IFRS 10 Consolidated Financial Statements perspective.