The question of control over APB has to be addressed in the light of IFRS 10. An investor is deemed to have control if the investor has power over the investee, exposure or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor's returns. In order to have power, the investor must have existing rights that give it the current ability to direct activities that significantly affect investee's returns.

Fraser and Neave, Limited (F&N) and Heineken each owns 50 percent interest in Asia Pacific Investments Pte Ltd (APIPL) (refer to Exhibit 1A in the case). APIPL in turn holds 64.8 percent shareholding in APB. APIPL's majority voting rights in APB gives it power to direct APB's activities and to receive dividends/returns. Heineken has direct interest of 9.5 percent in APB as of July...

You do not currently have access to this content.