Financial Sector (Collection of Data) determination No. 75 of 2005 - Reporting Standard ARS 222.0 (2005) - Exposures to Related Entities
4. Subsidiary4. Subsidiary
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4. Subsidiary
This is defined in accordance with the definition provided in AASB 1024 ‘Consolidated Accounts’ as “an entity that is controlled by a parent entity”[2] unless otherwise instructed by APRA.
Control is defined by AASB 1024 as the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in pursuing the objectives of the controlling entity.
Capacity is defined by AASB 1024 as meaning ability or power, whether direct or indirect, and includes ability or power that is presently exercisable as a result of, by means of, in breach of, or by revocation of, any of or any combination of the following:
(a) trusts;
(b) relevant agreements; and
(c) practices;
whether or not enforceable.