Set out how IFRS classifies, measures and requires disclosure of: (1) financial asset investments; (2) associates; (3) joint ventures; (4) business combinations; (5) special purpose entities and variable interest entities

Under IFRS the degree of influence sets the method. Passive holdings follow IFRS 9: amortised cost for debt held to collect contractual cash flows of principal and interest, fair value through OCI for debt held to collect and sell (gains recycled to profit on sale) or for equities by irrevocable election (never recycled), and fair value through profit or loss otherwise. Significant influence, usually 20% to 50%, means the equity method for associates, and joint ventures also use it. Control means consolidation under the acquisition method, with goodwill and a non-controlling interest, and control rather than legal form decides whether a structured entity is consolidated. The trap is treating the 20% line as decisive when board seats say otherwise.