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.
Economic appraisal is a method of capital budgeting that uses discounted cash flow techniques to determine the preferred investment by discounting the expected annual economic costs and benefits over the project's life. This method is particularly used for assessing governmental or quasi-governmental projects such as road, railway, and port developments.
Economic benefits represent the gains realized from an improvement in facilities or services provided by a government or local authority, usually expressed in financial terms.
Economic costs represent the projected costs revealed by an economic appraisal, excluding transfer payments within the economy such as taxes and subsidies.
