IFRS 12 para 7, IFRS 10, significant judgement, consolidation of 49% interest, de facto control

Telenor ASA – Annual report – 31 December 2019

Industry: telecoms

NOTE 3 Critical accounting judgements and key sources of estimation uncertainty (extract)
Critical judgements in applying the Group’s accounting policies (extract)
Consolidation of Digi
The Group consolidates Digi. Digi is listed on Bursa Malaysia Securities Berhad and the shares in Digi are widely dispersed. As the Group owns 49% of the shares, 98% of the shares have to be present at the General Meeting for the Group not to have the majority of the votes at the General Meeting. As a consequence of this and based on experience from past general meetings, the Group has the power to direct Digi’s activities. The Group’s assessment is that the ability to exercise control is upheld through a majority of the votes at the General Meeting and at the Board of Directors meetings. Consolidation based on de facto control is assessed on an ongoing basis.