Which of the following is/are true regarding majority, active investments?
a. An investor acquires shares of an investee so that the investor can control the investee both at the broad policy-making level and at the day-to-day operational level.
b. U.S. GAAP views ownership of more than 50% of an investee as implying an ability to control the investee, unless evidence indicates to the contrary.
c. IFRS views ownership of more than 50% of an investee as implying an ability to control the investee, unless evidence indicates to the contrary.
d. An investor cannot exercise control of a majority-owned investee if a court effectively controls the investee in bankruptcy proceedings or if the investee is a foreign company whose government restricts the withdrawal of assets from the country.
e. all of the above
E
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