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Under Ind AS 28, 'significant influence' is the power to:
AParticipate in the financial and operating policy decisions of the investee, but is not control or joint control
BDirect the relevant activities of the investee
CVeto strategic decisions
DBlock any decision through a casting vote
Answer & Solution
Correct answer: A. Participate in the financial and operating policy decisions of the investee, but is not control or joint control
Significant influence sits between 'mere financial investment' and control/joint control. The hallmark is the ability to participate (not direct) in financial and operating policy decisions.
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