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Under Ind AS 110, RELEVANT ACTIVITIES of an investee are those:
AOnly the activities listed in the investee's articles of association
BActivities specifically agreed in the shareholders' agreement
CAll operating activities recorded in the investee's books of account
DActivities of the investee that SIGNIFICANTLY AFFECT the investee's returns
Answer & Solution
Correct answer: D. Activities of the investee that SIGNIFICANTLY AFFECT the investee's returns
Para 10 — relevant activities are those that significantly affect the investee's returns. Examples: selling/purchasing goods, managing financial assets through their life, selecting/acquiring/disposing of assets, researching/developing products, determining funding structure, appointing/removing KMP. A directing investor's power over RELEVANT activities is what creates control — not just any operating decision.
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