. PT A currently controls the investee; B. PT A controls the investee later; or C. PT A does not control the investee
PT A owns 40% of the investee’s voting rights. PT B and PT C, the other investors each holds 27% of the investee’s voting rights. The remaining voting rights are held by two other shareholders, each 3%. PT A and other investors are exposed to the investee’s variable returns. Other information regarding ownership of the investee is described in the following independent situations:
1. PT A has a derivative contract to acquire an additional 20% of the investee’s voting rights, transferred from PT B and PT C, each 10%. The settlement date of the derivative contract is within 22 days. For PT A to change any policies of relevant activities requires approval of the majority voting rights through an Extraordinary General Meeting of Shareholders (EGMS). The current shareholders cannot change the current policy on relevant activities as EGMS can be held as early as 25 days ahead.
2. There is a shareholder agreement giving PT A the right to appoint, remove, and assign remuneration to management responsible for directing relevant activities. To amend the agreement, a majority vote is required in an EGMS, which can be held as early as 25 days ahead. On each independent situation abovementioned, determine whether:
A. PT A currently controls the investee;
B. PT A controls the investee later; or
C. PT A does not control the investee
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