Does the discussion paper discuss how to determine the composition of a group reporting entity? Should the composition be based on control or on risks and rewards?
The discussion paper discusses three different models for how to determine the composition of a group reporting entity: the controlling entity model, the common control model and the risks and rewards model. The boards’ preliminary view is that the composition of a group reporting entity should be based on control, using the controlling entity model as the primary basis. The common control model may also provide useful information, but the boards would determine in one or more specific standards when to apply that model, rather than in the framework. Although the boards’ preliminary view is that the risks and rewards model should not be used to determine the composition of a group reporting entity, there is a link between control and risks and rewards. The control concept includes both power over another entity and the ability to obtain benefits (or to reduce the incidence of losses). Considering the benefits element of control typically involves considering who bears risks and/or who
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- Does the discussion paper discuss how to determine the composition of a group reporting entity? Should the composition be based on control or on risks and rewards?
- I no longer own or control an entity or music publishing catalog(s) listed on the Group II Program Confirmation Form I received. What should I do?
- Does the discussion paper discuss how to assess whether an entity has control over another?
