Control exists when power over the investee, exposure to variable returns and the ability to use that power to affect those returns are all present. Control is usually obtained through a majority of voting rights, but contractual arrangements can also create control.
Subsidiaries are included in the consolidated financial statements using full consolidation.
Source: TFRS 10
Related terms
ConsolidationCombining the financial statements of a parent and the subsidiaries it controls as if they were a single economic entity.AssociateAn entity over which the investor has significant influence but not control or joint control.Non-controlling interestsThe equity in a subsidiary not attributable, directly or indirectly, to the parent.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.
Last updated: October 22, 2026 · This definition is for general information only.