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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.

See also