Need to Know: IFRS 10 - Consolidated Financial ... - BDO Canada

58 IFRS 10 Consolidated Financial StatementsJoint venture(IFRS 11)Joint venturer(IFRS 11)Key management personnel(IAS 24)Non-controlling interest(IFRS 10)Parent(IFRS 10)Party to a joint arrangement(IFRS 11)Power(IFRS 10)Protective rights(IFRS 10)Related party(IAS 24)A joint arrangement whereby the parties that have joint control of thearrangement have rights to the net assets of the arrangement.A party to a joint venture that has joint control of that joint venture.Key management personnel are those persons having authority andresponsibility for planning, directing and controlling the activities of the entity,directly or indirectly, including any director (whether executive or otherwise) ofthat entity.Equity in a subsidiary not attributable, directly or indirectly, to a parent.An entity that controls one or more entities.An entity that participates in a joint arrangement, regardless of whether thatentity has joint control of the arrangement.Existing rights that give the current ability to direct the relevant activities.Rights designed to protect the interest of the party holding those rights withoutgiving that party power over the entity to which those rights relate.A related party is a person or entity that is related to the entity that is preparingits financial statements (referred to as the ‘reporting entity’):(a) A person or a close member of that person’s family is related to a reportingentity if that person:(i) Has control or joint control of the reporting entity(ii) Has significant influence over the reporting entity(iii) Is a member of the key management personnel of the reporting entityor of a parent of the reporting entity.(b) An entity is related to a reporting entity if any of the following conditionsapplies:(i)(ii)(iii)(iv)(v)(vi)(vii)The entity and the reporting entity are members of the same group(which means that each parent, subsidiary and fellow subsidiary isrelated to the others)One entity is an associate or joint venture of the other entity (or anassociate or joint venture of a member of a group of which the otherentity is a member)Both entities are joint ventures of the same third partyOne entity is a joint venture of a third entity and the other entity is anassociate of the third entityThe entity is a post-employment benefit plan for the benefit ofemployees of either the reporting entity or an entity related tothe reporting entity. If the reporting entity is itself such a plan, thesponsoring employers are also related to the reporting entityThe entity is controlled or jointly controlled by a person identified in (a)A person identified in (a)(i) has significant influence over the entity oris a member of the key management personnel of the entity (or of aparent of the entity).