You Think You Know Who Controls That Company. The New Rules Might Disagree.

For many SMEs, the biggest change in the updated IFRS for SMEs is not how much of a company is owned, but who actually controls it. The revised Section 9 introduces a broader definition of control that looks beyond voting rights and focuses on who has the power to direct key decisions, who is exposed to the risks and rewards of the business, and who can use that power to influence outcomes. As a result, family groups, trust structures, and companies with dispersed shareholders may need to reassess whether consolidation is required, even where no single party holds a majority stake.