When assessing whether an investor has power over an investee, identifying the investee's relevant activities is a critical concept. Which of the following is not a common relevant activity?
Determining a funding structure or obtaining funding
Making capital decisions of the investee, including budgets
Selecting, acquiring or disposing of assets
Selecting the independent audit firm
Selecting the independent audit firm is not a common relevant activity when assessing whether an investor has power over an investee for the purpose of determining control. The ability to determine a funding structure, make capital decisions of the investee, including budgets, and selecting, acquiring, or disposing of assets are all relevant activities that may indicate an investor's power over an investee.
