Associate: Difference between revisions

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imported>Doug Williamson
(Update for FRS 102.)
imported>Doug Williamson
(Add links.)
 
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''Financial accounting.''  
1. ''Financial reporting.''  


For financial reporting purposes, an investment is normally classed and accounted for as an associate (or associated undertaking) when:
For financial reporting purposes, an investment is normally classed and accounted for as an associate (or associated undertaking) when:


(i)  the investor exercises significant influence over the operating and financial policies of the other entity, which is normally through holdings of over 20%, but less than 50%; and
(i)  the investor exercises ''significant influence'' over the operating and financial policies of the other entity, which is normally through holdings of over 20%, but less than 50%; and <br>
(ii) that other entity is not a ''subsidiary undertaking'' and the investment does not constitute an interest in a ''joint venture''.
(ii) that other entity is not a subsidiary undertaking and the investment does not constitute an interest in a joint venture.
 
 
Relevant accounting standards include IAS 28 and Section 14 and Section 15 of FRS 102.
 
 
2. ''Membership organisations''.
 
A category of membership that is less than full membership.
 


== See also ==
== See also ==
* [[Associated company]]
* [[Associated company]]
* [[Associative]]
* [[Equity accounting]]
* [[Equity accounting]]
* [[Equity method]]
* [[Financial reporting]]
* [[FRS 102]]
* [[IAS 28]]
* [[Investment]]
* [[Investment]]
* [[Member]]
* [[Joint arrangement]]
* [[Joint control]]
* [[Joint venture]]
* [[Joint venture]]
* [[Joint venturer]]
* [[Significant influence]]
* [[Subsidiary undertaking]]
* [[Subsidiary undertaking]]
* [[Associative]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Latest revision as of 21:05, 20 February 2023

1. Financial reporting.

For financial reporting purposes, an investment is normally classed and accounted for as an associate (or associated undertaking) when:

(i) the investor exercises significant influence over the operating and financial policies of the other entity, which is normally through holdings of over 20%, but less than 50%; and
(ii) that other entity is not a subsidiary undertaking and the investment does not constitute an interest in a joint venture.


Relevant accounting standards include IAS 28 and Section 14 and Section 15 of FRS 102.


2. Membership organisations.

A category of membership that is less than full membership.


See also