Under AASB 10 there is no assumption PDF

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There is no asusmption that exists within the infastruture ...

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Under AASB 10, there is no presumption that a wholly-owned subsidiary must vote the same as the parent in the absence of a legally binding contract, therefore, it is likely that there is an existence of a friendly relationship meaning friendly parties likely vote the same way given their exclusive relationship. When are potential voting rights considered in determining if one entity controls another? To establish whether Tokyo Ltd is a subsidiary of Tokyo, we must first consider the definition/elements of control: An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Interestingly, they are not a customer however combined this is the largest proportion of ordinary voting shares owned/number of positions held on Tokyo Ltd board of directors. Determination of control is a judgement. Ability to exert controls depends on such factors as: Size of the voting interests, The dispersion of other shareholdings, Level of disorganisation or apathy of the NCI shareholders, Attendance of AGMs, Contractual arrangements, Arrangements between friendly parties Hence, if we are to presume this presumption then the combined voting rights would 47%. As stated previously, if an investor holds less than 50% of the voting shares of an investee, the determination of whether the investor has power of the investee. Some factors to consider include; Attendance at annual general members meetings, level of dilution and apathy of the remaining shareholders and the existence of any contracts. Given that no information regarding the attendance at annual general members meetings, and the level of dilution is minimal aside from Kawasaki and other non-controlling interests and no information regarding contracts, obviously this is arguable on the lack of information however we would need to know especially given that this is an a Japanese entity that, whether most of the shareholders at the AGM live overseas and the usual percentage of individuals that are at a general members meetings....