POWER AND RELEVANT ACTIVITIES According to paragraph BC43 of the Basis for Conclusions on AASB 10/IFRS 10 Consolidated Financial Statements: Respondents to ED 10 did not object to changing the definition of control to power to direct the activities of an investee. Many were confused, however, about what the Board meant by ‘power to direct’ and which ‘activities’ the Board had in mind. They asked for a clear articulation of the principle behind the term ‘power to direct’. They also expressed the view that power should relate to significant activities of an investee, and not those activities that have little effect on the investee’s returns. Required Discuss whether AASB 10/IFRS 10 addressed the comments made by the respondents to ED 10. CASE STUDY