Distinguish between control of a company and significant influence over a company.

A.

According to the FASB, control cannot exist unless an ownership interest exceeds 75 percent. Significant influence is presumed if the ownership interest is between 50 and 75 percent. Under IFRS the distinction is driven by control of the board through contracts, etc even if less than 75% is owned.

B.

According to the FASB, control cannot exist unless an ownership interest exceeds 90 percent. Significant influence is presumed if the ownership interest is between 75 and 90 percent. Under IFRS the distinction is driven by control of the board through contracts, etc even if less than 90% is owned.

C.

According to the FASB, control usually exists only when an investor's ownership interest in the voting stock of the investee exceeds 50%. Significant influence is presumed if the ownership interest is between 20% and50%.

D.

None of the above are correct.