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Under Ind AS 110, a DE-FACTO AGENT is a party who:
AActs on the investor's behalf without necessarily having a contractual agreement to do so
BIs a contractually appointed legal representative of the investor
CIs an independent third party hired through a tendering process
DHolds a power of attorney from the investor
Answer & Solution
Correct answer: A. Acts on the investor's behalf without necessarily having a contractual agreement to do so
Para B73-B74 — a de-facto agent is a party that the investor (or its directing parties) has the ability to direct to act on the investor's behalf, WITHOUT requiring a formal contractual arrangement. Examples: related parties, parties that received their stake as a contribution/loan from the investor, parties bound by transfer restrictions favouring the investor, parties dependent on subordinated finance from the investor.
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