Effect of shareholder decision-making rights on classification
2 December 2025
The IASB tentatively decided to retain the multi-factor approach for assessing whether shareholder decisions are considered entity decisions and emphasized that entities must apply judgment, as no single factor is conclusive
The IASB tentatively decided to:
- proceed with the multi-factor approach set out in the Exposure Draft for assessing whether shareholder decisions are treated as entity decisions;
- clarify that an entity must apply judgement when considering these proposed factors (e.g. when determining the weight of each factor, given that no single factor is individually decisive).
We will return in more detail to these proposals in a future edition.
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