Associate: Difference between revisions
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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 <br> | (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 Section 14 and Section 15 of FRS 102. | Relevant accounting standards include IAS 28 and Section 14 and Section 15 of FRS 102. | ||
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* [[Associative]] | * [[Associative]] | ||
* [[Equity accounting]] | * [[Equity accounting]] | ||
* [[Equity method]] | |||
* [[Financial reporting]] | * [[Financial reporting]] | ||
* [[FRS 102]] | * [[FRS 102]] | ||
* [[IAS 28]] | |||
* [[Investment]] | * [[Investment]] | ||
* [[Member]] | * [[Member]] | ||
* [[Joint arrangement]] | |||
* [[Joint control]] | |||
* [[Joint venture]] | * [[Joint venture]] | ||
* [[Joint venturer]] | |||
* [[Significant influence]] | |||
* [[Subsidiary undertaking]] | * [[Subsidiary undertaking]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:The_business_context]] | [[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.
