An associate company is one over which the investing company has sufficient shares to enable it to
Question:
An associate company is one over which the investing company has sufficient shares to enable it to exercise significant influence, but not control. Sufficient shares, in this context, is defined as 20 per cent or more of the shares. How can such a low percentage be regarded as giving significant influence?
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The concept of significant influence in accounting despite the relatively low threshold of 20 percent ownership is based on the ability to exert influ...View the full answer
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Deepak Sharma
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Related Book For 
Financial Accounting For Decision Makers
ISBN: 9781292251257
9th Edition
Authors: Peter Atrill, Eddie McLaney
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