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Does Substantial Interest and Significant Influence mean the same?
Accountancy
Or is Substantial interest only used for 'Control' definition purpose? See attached please to refer what i am talking about
Answers (4)
Control for AS 21 comes from ownership (>50%) or controlling composition BOD. For AS-18 control also includes substantial interest . something 50% or less. Significant influence is the ability to direct the enterprise. Significant influence can come from substantial interest as well.
CA Suraj Lakhotia Admin
Control for AS 21 comes from ownership (>50%) or controlling composition BOD. For AS-18 control also includes substantial interest . something 50% or less. Significant influence is the ability to direct the enterprise. Significant influence can come from substantial interest as well.
So, if we talk about one in another: Substantial interest includes Sig Infl But Sig Inf does not mean Sub Int. Right?
CA Suraj Lakhotia Admin
Control for AS 21 comes from ownership (>50%) or controlling composition BOD. For AS-18 control also includes substantial interest . something 50% or less. Significant influence is the ability to direct the enterprise. Significant influence can come from substantial interest as well.
And does Substantial Interest and power to direct financial/operating policies of the entity go hand-in-hand?
Thread Starter
Kumarjit DeyAnd does Substantial Interest and power to direct financial/operating policies of the entity go hand-in-hand?
Some times substantial interest may not give rise to influence. It depends on Shareholders Agreements.
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