What indicates an investor’s ability to significantly influence the decision-making process of an investee?

1. If an investor holds between 20 and 50% of the voting stock of the investee, significant influence is normally assumed and the equity method is applied unless there is evidence to the contrary.

2. Participation in policy making process, including participation in decisions about dividends or other distribution.

3. Representations on the board of directors or equivalent governing body of the investee.

The work methodology and its competences in applying them with ease.

investor always looks the credibality of investee while investing in its company its long term benifits like company liquidity

1. Representations on the board of directors or equivalent governing body of the investee

2.Participation in policy making process, including participation in decisions about dividends or other distribution 

3.Provision of essential technical information 

4 Material transactions between the investor and the invested.

5 Interchange of managerial personnel. (IAS)