How does an entity determine control under IFRS 10 for consolidation purposes?

Under IFRS 10, an investor controls an investee if, and only if, the investor has all three of the following elements:

1. Power over the investee (the current ability to direct the relevant activities that significantly affect the investee’s returns).
2. Exposure, or rights, to variable returns from its involvement with the investee.
3. The ability to use its power over the investee to affect the amount of the investor’s returns (a link between power and returns).

It is necessary to consider all the circumstances including potential shares and the size and dispersion of the other holdings. Please note that this means that the definition of a subsidiary is not a number as it is possible to control a compnay and account for it as a subsidiary with an investment of less than 50%.