Event Hospitality & Entertainment Limited provided the following information in the notes to the financial statements in its 2018 annual report.

Notes to the financial statements for the year ended 30 June 2018.

Section 5 group composition

5.3 interests in other entities

Accounting policy

Interests in equity accounted investees

The Groups interests in equity accounted investees comprise interests in associates and interests in joint ventures. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity.

Interests in associates and joint ventures are accounted for using the equity method. They are recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Groups share of the profit or loss and other comprehensive income of equity accounted investees, until the date on which significant influence or joint control ceases.

Unrealised gains arising from transactions with equity accounted investees are eliminated to the extent of the Groups interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

Required

Some investors in Event Hospitality & Entertainment Ltd who have limited accounting knowledge, particularly about equity accounting, have asked you the following questions:

1. What is the difference between significant influence and control?

2. How is the date of significant influence determined?

3. What is meant by the term unrealised gains and losses and why are they eliminated?