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Chapter 12





                           Associates





                                6.1  Definition of an associate

                                ‘An associate is an entity over which the parent has
                                SIGNIFICANT INFLUENCE.’(IAS 28 para 3)


                                Typically achieved via a shareholding of between 20–50%.

               6.2  Accounting for an associate


               Use EQUITY accounting.

               No addition of assets and liabilities or income and expenses (no control is held).




















































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