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Under Ind AS 110, an investor has POWER over an investee through:
ARights documented in non-binding letters of intent
BEXISTING RIGHTS that give it the CURRENT ABILITY to direct the relevant activities of the investee
CFuture rights expected to vest in the investor
DRights held by another party (e.g., a parent) that the investor can lobby to exercise
Answer & Solution
Correct answer: B. EXISTING RIGHTS that give it the CURRENT ABILITY to direct the relevant activities of the investee
Para 10 — power requires (a) EXISTING rights, (b) CURRENT ability, and (c) directing RELEVANT activities. Future or contingent rights don't count until they crystallise. Rights held by others (even with persuasive influence over the holder) don't constitute the investor's power. Non-binding letters don't create rights. Substantive rights vs protective rights: only substantive rights confer power.
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