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ABC Ltd has gained control of XYZ Ltd by purchasing 80% of the share capital, while only gaining some significant influence over Wan Ltd due

ABC Ltd has gained control of XYZ Ltd by purchasing 80% of the share capital, while only gaining some significant influence over Wan Ltd due to only holding a 20% share of the capital. Your Financial Controller has asked you to evaluate critically the differences between control and significant influence relating to the consolidation of financial statements and explain how a company may still control another entity even though it may not own a majority of the ordinary shares.

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