(144)-IMPORTANT DEFINITIONS FOR GROUP ACCOUNTING

Important Definitions for Group Accounting

Control

Control is the ability of an undertaking to direct the financial and operating policies of another undertaking with a view to gaining economic benefits from its activities.

Interest held on a long term basis

An interest held on a long term basis is an interest which is held other than exclusively with a view to subsequent resale.

Interest held exclusively with a view to subsequent resale

An interest exclusively with a view to subsequent resale is either:

• An interest for which a purchaser has been identified or is being sought, and which is reasonably expected to be disposed of within approximately one year of its date of acquisition, or
• An interest that was acquired as a result of the enforcement of a security, unless the interest has become part of the continuing activities of the group or the holder acts as if it intends the interest to become so

Managed on a unified basis

Two or more undertakings are managed on a unified basis if the whole of the operations of the undertakings are integrated and they are managed as a single unit. Unified management does not arise solely because one undertaking manages another.