Associate: Difference between revisions
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imported>Doug Williamson (Contextualise more expressly.) |
imported>Doug Williamson (Update for FRS 102.) |
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''Financial accounting.'' | ''Financial accounting.'' | ||
For financial reporting purposes, an investment is 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 | ||
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* [[Associated company]] | * [[Associated company]] | ||
* [[Equity accounting]] | * [[Equity accounting]] | ||
* [[Investment]] | * [[Investment]] | ||
* [[Joint venture]] | * [[Joint venture]] | ||
* [[Subsidiary undertaking]] | * [[Subsidiary undertaking]] | ||
* [[Associative]] | * [[Associative]] | ||
Revision as of 10:00, 6 November 2015
Financial accounting.
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.
