# Control

> Power over a company, exposure to its variable returns, and the ability to use that power to affect those returns. Control makes the company a subsidiary and brings it into the consolidation.

Source: https://finconsol.com/blog/glossary/control/ (updated 28 October 2026)

## Why does it matter in a group?

Control decides what is consolidated. A company with control is a [subsidiary](/blog/glossary/subsidiary/) and is included line by line. A company with less is an [associate](/blog/glossary/associate/) or a [joint venture](/blog/glossary/joint-venture/) and is shown on one line. Control is judged on three tests together: power over the investee, exposure to its variable returns, and the ability to use that power to affect those returns.[1](#src-1) A majority of the votes usually gives power, but rights written into agreements can give it too, and it is judged again when facts change.

## A small example

Zenvara holds 80 percent of the votes in Kestrelwick Pte Ltd and appoints its board. It controls Kestrelwick and consolidates it in full. The owners of the other 20 percent are the [non-controlling interest](/blog/glossary/non-controlling-interest/).

## Sources

## Sources

1. IFRS 10 [Consolidated Financial Statements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/), paragraph 7.