Final answer:
Control is the power to govern the financial and operating policies of an entity to obtain benefits. Under IFRS, control is determined by the ability to direct activities, get variable returns, and affect those returns. ASPE's conditions are similar, focusing on unilateral decision-making and benefiting from operations.
Step-by-step explanation:
Understanding Control in IFRS and ASPE
Control refers to the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In the context of International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE), there are specific conditions that must be satisfied for an entity to be considered in control of another entity. Conditions for Control under IFRS Under IFRS, control is based on the investor's ability to:
conditions for Control under ASPE the ASPE framework sets similar standards, which include the ability to: these conditions ensure that the parent company has a deciding level of influence over the subsidiary or investee, thus exercising control. The exact assessment may vary depending on the complexity of the relationships between entities.