Associate

Financial accounting.

For financial reporting purposes, an investment is 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.

See also

• Associated company
• Equity accounting
• FRS 9
• Investment
• Joint venture
• Subsidiary undertaking
• Associative