Control refers to the ability of one entity to direct the financial and operating policies of another entity or to obtain the economic benefits from an asset. This term is central to the consolidation of financial statements and the conceptual framework for financial reporting.
An interest in a company that gives a person or another company control of it, usually through ownership of more than half the voting shares. Controlling interest can also be achieved with fewer shares if they are widely dispersed.
Dominant influence refers to the power exerted over a company to control its operating and financial policies, potentially treating it as a subsidiary within group accounts.
An immediate holding company has a controlling interest in another company but is itself controlled by a third company, commonly known as the holding company. It plays a key role in corporate structure and governance.
Minority interest, also known as non-controlling interest, represents the shareholding of individual shareholders in a company where more than 50% is owned by a holding company. These shareholders are entitled to profits in the form of dividends but do not have significant influence over company policies.
