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An entity loses significant influence over an associate when it loses the power to participate in financial/operating policy decisions. Which of the following is NOT a recognised trigger for loss of significant influence?
AContractual arrangement curtailing the investor's participation rights
BAssociate becomes subject to control of a court, government, regulator or administrator
CSale of part of the holding such that voting power crosses below the threshold AND there is no other indicator of significant influence
DMere increase in another investor's stake to 30% without any change in the investor's rights or participation
Answer & Solution
Correct answer: D. Mere increase in another investor's stake to 30% without any change in the investor's rights or participation
Loss of significant influence requires the investor to lose the POWER to participate. A different investor's stake rising — without any change in the investor's own participation rights — does not, on its own, signal loss. The other three are explicit Ind AS 28 examples.
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