c holds 100 of the voting rights of d which is a profitable entity in its initial as 611701

Investee loses money due to change in market conditions

C holds 100% of the voting rights of D, which is a profitable entity. In its initial assessment, C concludes that it controls D.

Due to a change in the market conditions, D begins to lose money and is no longer profitable (e.g. due to a decrease in demand for its products). This would probably not trigger re-assessment, because the change in market conditions would likely not change the identification of the relevant activities, how those activities are directed, the investors” exposure to variable returns, or the linkage between power and returns.

However, at some point, D might become so unprofitable as to consider restructuring its debt, or filing for bankruptcy. This situation is discussed.