Discuss the Conditions Under Which the FASB Would Assume a Presumption

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The Answer is The FASB presumes that control exists if one company owns over 50% of the voting interest in another company or has an unconditional right to appoint a majority of the members of another company's controlling body. Additionally, in the absence of evidence to the contrary, one or more of the following conditions would lead to a presumption of control:
1.Ownership of a large noncontrolling interest where no other party has a significant interest.
2.Ownership of securities or unconditional rights in the company that can be converted into securities that would cause a controlling interest to exist.
3.The acquiring company has the unconditional right to dissolve the entity whose interest was acquired and assume control of the assets.
4.A relationship with another entity that assures control through provisions in a charter, bylaws, or trust agreement.
5.A legal obligation created with the controlled entity that requires substantially all cash flows and other economic benefits to flow to the controlling entity.
6.A sole general partner in a limited partnership where no other party may dissolve the partnership or remove the general partner.

Discuss the Conditions Under Which the FASB Would Assume a Presumption

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