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Under Ind AS 110, INVESTEE's KMP being current or previous employees of the INVESTOR is a:
ATriggers a related-party-only consolidation under Ind AS 24
BIndicator that the investor may have MORE THAN A PASSIVE INTEREST in the investee — relevant when combined with other rights
CSufficient evidence of control on its own
DIrrelevant — KMP background does not affect control assessment
Answer & Solution
Correct answer: B. Indicator that the investor may have MORE THAN A PASSIVE INTEREST in the investee — relevant when combined with other rights
Para B19 — investee KMP being current/former employees of the investor is an INDICATOR of more-than-passive interest (a special relationship). In isolation it does NOT establish control, but COMBINED with other rights and exposure to variable returns, it can support a control conclusion. The standard is careful: special-relationship indicators by themselves are insufficient.
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