Page 349 - F3 -FA Integrated Workbook STUDENT 2018-19

Consolidated financial statements II

Associates

3.1 Key definitions

 An associate is ‘an entity over which the investor has significant influence’
(IAS 28, para 3).

 Significant influence is ‘the power to participate in the financial and
operating policy decisions of the investee but is not control…...of those
policies’ (IAS 28, para 3).

 Remember that definitions may be tested in the examination.

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