Different relevant activities at different point in time- FAQ – ज्ञान -Gyan"IFRS"

Different relevant activities at different point in time- FAQ

Question :

While making an assessment related to control as per Ind-As 110/ IFRS-10, whether relevant activities could be defined differently at different point in time and does it requirement re-assessment each such time?

Suggested response:

In order to assess whether an entity CONTROLS to some other entity needs all relevant activities to be found out first and then to evaluate who controls those activities-.

Relevant activities means “”relevant activities are activities of the investee that significantly affect the investee’s returns (as per Ind-As 110)””


In actual parlance, there could be many relevant activities and could be controlled by different investors at different POINT in TIMES e.g. A company who just initiating its business operations would be depending upon major regulatory approvals that is assuming being controlled by one investor (& this is relevant activity this point in time), however once such approvals are done away then development of the product might be a relevant activity which is assuming being controlled by some other investor.

Refer Ind-As 110/ IFRS-10 – Consolidated financial statements”

Para -B13In some situations, activities both before and after a particular set of circumstances arises or event occurs may be relevant activities. When two or more investors have the current ability to direct relevant activities and those activities occur at different times, the investors shall determine which investor is able to direct the activities that most
significantly affect those returns consistently with the treatment of concurrent decisionmaking rights (see paragraph 13). The investors shall reconsider this assessment over time if relevant facts or circumstances change……””

Hence it could be different RELEVANT ACTIVITY at different POINT in TIME and hence each such time RE-ASSESSMENT is required which eventually make the conclusion about the consolidation as per Ind-As 110.

(The above write-up is based on some frequently asked questions (FAQ) that are being asked by some of our readers. If you want to send one, then please email to anuj@gyanifrs.com)

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