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China may use international accounting rule for de facto control

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China may require companies to consolidate the financial statements of businesses they control with stakes of less than 50 per cent, as the nation implements international standards.

Under revised rules issued by the Ministry of Finance, an investor would be judged to have de facto control of a company if it can exert influence on its activities or coordinate with other shareholders to control the firm with less than half of the voting rights. The ministry is seeking public feedback on a draft of the revisions. Reported by S.China Morning Post 25 minutes ago.

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