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Five investors each own 20% of Entity Z and each has one seat on Z's seven-member board. Strategic operating and financing decisions require the consent of ANY FOUR of the five directors. Under Ind AS 110:
AZ is a joint venture by default because each investor holds 20% with equal voting rights
BAll five investors jointly control Z under Ind AS 111
CThe party with the largest individual influence (e.g., the oldest investor) controls Z
DNO SINGLE PARTY controls Entity Z — and there is NO joint control either, because unanimous consent is not required for relevant-activity decisions
Answer & Solution
Correct answer: D. NO SINGLE PARTY controls Entity Z — and there is NO joint control either, because unanimous consent is not required for relevant-activity decisions
When power is SHARED among multiple parties without any single party controlling, AND without unanimous consent required, there is no control under Ind AS 110 and no joint control under Ind AS 111. Investors account for their interest under Ind AS 28 (associates, if significant influence applies — typically 20%+ qualifies). Joint control requires UNANIMOUS consent for relevant activity decisions, which is missing here.
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