Page 264 - F2 Integrated Workbook STUDENT 2019
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Chapter 11
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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