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International Case 12-3 Comparison of equity method between IFRS and U.S. GAAP The following are excerpts from the 2015 financial statements of Renault, a large

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International Case 12-3 Comparison of equity method between IFRS and U.S. GAAP The following are excerpts from the 2015 financial statements of Renault, a large French automobile manufacturer 14- INVESTMENT IN NISSAN A - Nissan consolidation methood Renault's percentage interest in Nissan is 43.7% and Renault holds 43.4% of voting rights in Nissan, Renault and Nissan have chosen to develop a unique type of alliance between two distinct companies with common interests, uniting forces to achieve optimum performance. The Alliance is organized so as to preserve individual brand identities and respect each company's corporate culture. Consequently Renault is not assured of holding the majority of voting rights in Nissan's Shareholders' Meeting. . The terms of the Renault-Nissan agreement do not entitle Renault to appoint the majority of Nissan directors, nor to hold the majority of voting rights at meetings of Nissan's Board of Directors; Renault cannot unilaterally appoint the President of Nissan; on December 31, 2015, Renault occupied two of the nine seats on Nissan's Board of Directors (unchanged since December 31, 2014) Renault-Nissan BV., owned 50% by Renault and 50% by Nissan, is the Alliance's joint decision-making body for strategic issues concerning either group individually. Its decisions are applicable to both Renault and Nissan. This decision-making power was conferred on Renault-Nissan B.V. to generate synergies and bring both automakers worldwide economies of scale. This entity does not enable Renault to direct Nissan's financial and operating strategies, which are governed by Nissan's Board of Directors and cannot therefore be considered to represent contractual control by Renault over Nissan. The matters examined by Renault-Nissan B.V. since it was formed have remained strictly within this contractual framework, and are not an indication that Renault exercises control over Nissan Renault can neither use nor influence the use of Nissan's assets in the same way as its own assets Renault provides no guarantees in respect of Nissan's debt International Case 12-3 Comparison of equity method between IFRS and U.S. GAAP The following are excerpts from the 2015 financial statements of Renault, a large French automobile manufacturer 14- INVESTMENT IN NISSAN A - Nissan consolidation methood Renault's percentage interest in Nissan is 43.7% and Renault holds 43.4% of voting rights in Nissan, Renault and Nissan have chosen to develop a unique type of alliance between two distinct companies with common interests, uniting forces to achieve optimum performance. The Alliance is organized so as to preserve individual brand identities and respect each company's corporate culture. Consequently Renault is not assured of holding the majority of voting rights in Nissan's Shareholders' Meeting. . The terms of the Renault-Nissan agreement do not entitle Renault to appoint the majority of Nissan directors, nor to hold the majority of voting rights at meetings of Nissan's Board of Directors; Renault cannot unilaterally appoint the President of Nissan; on December 31, 2015, Renault occupied two of the nine seats on Nissan's Board of Directors (unchanged since December 31, 2014) Renault-Nissan BV., owned 50% by Renault and 50% by Nissan, is the Alliance's joint decision-making body for strategic issues concerning either group individually. Its decisions are applicable to both Renault and Nissan. This decision-making power was conferred on Renault-Nissan B.V. to generate synergies and bring both automakers worldwide economies of scale. This entity does not enable Renault to direct Nissan's financial and operating strategies, which are governed by Nissan's Board of Directors and cannot therefore be considered to represent contractual control by Renault over Nissan. The matters examined by Renault-Nissan B.V. since it was formed have remained strictly within this contractual framework, and are not an indication that Renault exercises control over Nissan Renault can neither use nor influence the use of Nissan's assets in the same way as its own assets Renault provides no guarantees in respect of Nissan's debt

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