Intercorporate Investments Exposure Draft on Consolidation ED establishes presumption of control if an entity: Has a majority voting interest in or a right to appoint a majority of an entity's governing body Has a large minority voting interest and no other party or organized group of parties has a significant voting interest Has a unilateral ability to (1)obtain a majority voting interest in or 2) obtain a right to appoint a majority of the corporation's governing body through the present ownership of convertible securities or other rights that are currently exercisable at the option of the holder and the expected benefit from converting those securities or exercising that right exceeds its expected cost Is the only general partner in a limited partnership and no other partner or organized group of partners has the current ability to dissolve the limited partnership or otherwise remove the general partner FASBED establishes presumption of control if an entity: ➢ Has a majority voting interest in or a right to appoint a majority of an entity’s governing body ➢ Has a large minority voting interest and no other party or organized group of parties has a significant voting interest ➢ Has a unilateral ability to (1) obtain a majority voting interest in or (2) obtain a right to appoint a majority of the corporation’s governing body through the present ownership of convertible securities or other rights that are currently exercisable at the option of the holder and the expected benefit from converting those securities or exercising that right exceeds its expected cost ➢ Is the only general partner in a limited partnership and no other partner or organized group of partners has the current ability to dissolve the limited partnership or otherwise remove the general partner Intercorporate Investments Exposure Draft on Consolidation FASB