Associate - an entity over which the investor has significant influence (20%);
>Representation in the BOD
>Participate policy making process
>Material transaction between investor and investee
>Interchange of management personnel
>Provision of info
Equity Method - based on the economic relationship between the investor and the investee
- at cost
- CA increased by profit, decrease by loss
- dividends received reduced CA
- invesment must ordinary share
- investment in associate as noncurrent asset
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Accounting
RandomThis book is filled with accounting lessons specially crafted for accounting students and aspiring accountants. Dive into the world of numbers and financial know-how as I guide you through essential concepts and practical insights. Whether you're ju...
