Associate

From ACT Wiki
Revision as of 10:19, 6 November 2015 by imported>Doug Williamson (Update for FRS 102)
Jump to navigationJump to search

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.

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


See also