Associate: Difference between revisions
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imported>Doug Williamson (Update.) |
imported>Doug Williamson (Add second definition.) |
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''Financial reporting.'' | 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: | ||
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Relevant accounting standards include Section 14 and Section 15 of FRS 102. | Relevant accounting standards include 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]] | ||
* [[FRS 102]] | |||
* [[Investment]] | * [[Investment]] | ||
* [[Member]] | |||
* [[Joint venture]] | * [[Joint venture]] | ||
* [[Subsidiary undertaking]] | * [[Subsidiary undertaking]] | ||
Revision as of 21:58, 14 October 2020
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 Section 14 and Section 15 of FRS 102.
2. Membership organisations.
A category of membership that is less than full membership.
