Viewpoints: Acquisition of control without a majority of the voting rights (Oil and gas)

Understand the concept of control without a majority of the voting rights as it relates to acquisitions and reverse acquisitions.

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An investor might have control over an investee even when it has less than a majority of the voting rights of that investee (commonly referred to as "de factor control" by industry participants). International Financial Reporting Standards (IFRS) discusses the concept of having control without a majority of the voting rights; however, the application of this concept remains a highly judgmental area of accounting.

To better understand this concept, read Viewpoints: Applying IFRSs in the Oil and Gas Industry — Business Combinations: Acquisition of Control Without a Majority of the Voting Right.

What you will learn

Developed jointly by Chartered Professional Accountants of Canada (CPA Canada), the Canadian Association of Petroleum Producers and the Explorers and Producers Association of Canada, this paper addresses topics such as:

  • acquisition involving control without a majority of the voting rights
  • reverse acquisition involving control without a majority of the voting rights
  • disclosures of significant judgment
  • continuous assessment of control

Highlights

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