"Control" is a very important term in business combinations. We (investor/parent) start to consolidate subsidiaries (investee) at the date of control obtained and also calculate goodwill. IFRS 10 gives a revised definition for control.
Control
Investor has the control when he/it has power, exposed to risk and can use power to affect the amount of return.
Power
This is the power to direct relevant activities. Power arises from rights such as voting rights or contractual arrangement.
Exposure
The investor must be exposed to variability of returns as a result of involvement with an investee.
Ability to use power
Investor must also have the ability to use its power over investee to affect its return from its involvement with the investee.
The assessment of control will not be straightforward and a great amount of judgement will be involved.
Note that IFRS 10 is only applicable for annual reporting periods beginning on or after 1 Jan 2013. :)
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