BC71 In developing IFRS 10 the Board, while acknowledging that the factors to be considered in assessing control will vary, had the objective of developing a control model that applies the same concept of control as the basis for consolidation to all investees, irrespective of their nature.

BC72 In ED 10, the Board set out specific factors to consider when assessing control of a structured entity. ED 10 defined a structured entity as an entity whose activities are restricted to the extent that those activities are, in essence, not directed by voting or similar rights.

BC73 The Board's intention when including the subsection specifically for structured entities was as a convenience for those assessing control of traditional operating entities that are typically controlled through voting rights - the Board did not want to force those assessing control of traditional operating entities to read, and assess whether to apply, all the guidance relating to structured entities if that guidance was not relevant.

BC74 However, the vast majority of respondents to ED 10 were opposed to creating a subset of investees for which different guidance would apply when assessing control. In their view, such an approach would perpetuate problems faced in applying the guidance in IAS 27 and SIC‑12 - two control models leading to inconsistent application and, therefore, potential arbitrage by varying investee‑specific characteristics. Respondents also noted that the guidance provided for structured entities should apply generally to all investees. Therefore, they suggested that there should be a single section that combines guidance on assessing control of all investees.