1. financed by a grant from Switzerland through the Swiss Contribution to the enlarged European Union Poland Financial Reporting Technical Assistance Program (FRTAP) IFRS Community of Practice in Warsaw Workshop 2, 2 December 2011 IFRS 10 Consolidated Financial Statements David Cairns

2. http://go.worldbank.org/4ABQSZP4F0 Power over the investee + Exposure to, or rights to, variable returns from involvement with investee Ability to use power over the investee to affect the amount of the investor’s returns Control + =

3. http://go.worldbank.org/4ABQSZP4F0 Variable returns  have potential to vary as a result of the investee’s performance  may be positive or negative Variable returns may include  dividends  interest  changes in the value of the investment  performance fees  economies of scale, cost savings etc  access to proprietary knowledge  etc. Variable Returns

4. http://go.worldbank.org/4ABQSZP4F0 Power arises from existing rights that give the current ability to direct the activities that significantly affect the investee’s returns (relevant activities) = Power arises from existing rights that give the current ability to direct the relevant activities of the investee Power Over the Investee

5. http://go.worldbank.org/4ABQSZP4F0 Power arises from existing rights that give the current ability to direct the relevant activities of the investee Relevant activities of the investee may include  selling and purchasing goods and services  managing financial assets  selecting, acquiring or disposing of assets  researching and developing new products/processes  determining funding structure  obtaining funding  etc. Power Over the Investee

6. http://go.worldbank.org/4ABQSZP4F0 Power arises from existing rights that give the current ability to direct the relevant activities of the investee Directing the relevant activities of the investee may include:  establishing operating and capital decisions of investee, including budgets  appointing and remunerating investee’s key management personnel or service providers  terminating employment or services of investee’s key management personnel or service providers Power Over the Investee

7. http://go.worldbank.org/4ABQSZP4F0 Power arises from existing rights that give the current ability to direct the relevant activities of the investee Rights may include, for example  voting rights or potential voting rights  rights to appoint, re-assign or remove investee’s key management personnel  rights to appoint or remove another entity that directs the relevant activities  rights to direct the investee to enter into, or veto any changes in, transactions for the benefit of the investee Power Over the Investee

8. http://go.worldbank.org/4ABQSZP4F0 Ability to direct the activities that significantly affect the investor’s returns from the investor’s involvement with the investee Acting as a principal  not as an agent for some other entity or person Ability to Use Power

9. financed by a grant from Switzerland through the Swiss Contribution to the enlarged European Union Poland Financial Reporting Technical Assistance Program (FRTAP) IFRS Community of Practice in Warsaw Workshop 2, 2 December 2011 IFRS 10 Consolidated Financial Statements David Cairns