Control is the ability of an undertaking to direct the financial and operating policies of another undertaking with a view to gaining economic benefits from its activities.
Interest held on a long term basis
An interest held on a long term basis is an interest which is held other than exclusively with a view to subsequent resale.
Interest held exclusively with a view to subsequent resale
An interest exclusively with a view to subsequent resale is either:
- An interest for which a purchaser has been identified or is being sought, and which is reasonably expected to be disposed of within approximately one year of its date of acquisition, or
- An interest that was acquired as a result of the enforcement of a security, unless the interest has become part of the continuing activities of the group or the holder acts as if it intends the interest to become so
Managed on a unified basis
Two or more undertakings are managed on a unified basis if the whole of the operations of the undertakings are integrated and they are managed as a single unit. Unified management does not arise solely because one undertaking manages another.