Asked by Maryam Almamlouk on Apr 24, 2024
Verified
Explain why indirect ownership interests are not relevant to determining control in a tiered corporate group.
Indirect Ownership Interests
Refers to a situation where an entity owns an interest in another entity through an intermediary rather than directly.
Tiered Corporate Group
A hierarchical structure where a parent company controls subsidiary companies, which in turn may control their own subsidiaries, creating multiple levels of entity relationships.
Control
The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.
- Digest the significance of direct and indirect ownership in steering and consolidation proceedings.
Verified Answer
PN
Patricia Nicole RodriguezMay 02, 2024
Final Answer :
Indirect ownership interests in a tiered group:
- Control in a tiered corporate group is determined using direct ownership interests.
- In a tiered group the indirect ownership interests rarely sum to a controlling interest.However,they are important in determining the NCI.
- Control in a tiered corporate group is determined using direct ownership interests.
- In a tiered group the indirect ownership interests rarely sum to a controlling interest.However,they are important in determining the NCI.
Learning Objectives
- Digest the significance of direct and indirect ownership in steering and consolidation proceedings.