OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
View ACCA F3 / FIA FFA lectures Download F3 notes
April 2, 2015 at 3:28 pm
Dear john What is the difference between associate and simple investment?
John Moffat says
April 2, 2015 at 11:25 pm
An associate is where one company has significant influence over another – usually where they own between 25% and 50% of the shares.
It is only relevant if the company owing the shares is already producing consolidated accounts because they also have a subsidiary.
March 31, 2015 at 7:38 pm
Hello I went through all the lectures on consolidation and found your teaching method to be really good. Do u specifically do consolidation for f7 also
March 10, 2015 at 7:07 am
Acca become easy for me just because of you. I do not have words to appreciate you.
October 12, 2013 at 9:36 am
Hey Big up, and kudos to the team at Open tuition, for I have just passed my F3 paper with a cool 70%, solely relying on the works and lectures on Open tuition.
Advice to any student: believe in Open tuition and you will make it.
True to the cause of Open Tuition, best things in life are free.
October 12, 2013 at 10:06 am
Thats great – congratulations
Pranesh Ramalingam says
August 27, 2013 at 3:50 pm
Mr. Moffet, What if a company P has exactly 50% of shares of Q?
A subsidiary or Associate
September 26, 2013 at 10:38 am
I have the same question..
September 26, 2013 at 10:56 am
IFRS 10 now takes care of this – even though the big shareholder does not have >50% of the votes, IFRS 10 talks about effective control. Providing the distribution of the remaining shares is relatively widespread, then our 50% holder has effective control and the investee would therefore be treated as a subsidiary
September 26, 2013 at 1:16 pm
THANK YOU SO MUCH SIR! 😀
September 26, 2013 at 2:02 pm
December 31, 2012 at 4:58 pm
HI there ,
I am not sure if 100% correct but i think i have some answers for these questions
Q:1 I believe you are saying that for example company A has 51% shares in company B, then company B will have remaining 49% shares which will make it a subsidiary.
Q:2 even if company A has less than 50% shares in company B , if it has more than 50% voting rights than it will be the parent cause all the financial n operational decisions of B will be in “control” of A
( one more to add is that ordinary shares carry voting rights so , if 50% ordinary shares then 50% voting rights, but the condition you are stating can also exist )
Q:3 share premium comes from share capital because when we record share capital we also record the corresponding share premium for the same number of shares so , if a company owns 51% of ordinary shares then it will own the same percentage of share premium . Now if we calculate it as
51%*100K +51%*50K= 76.5K which is 51% of 150K
I am not sure if these will help you , but if they do then I am glad .
December 9, 2012 at 1:49 pm
Thank you very much Open Tuition team, very nice lecture, however I have 3 questions, I’ll be very grateful if someone could help me on them:
Question 1: We know that an associate have between 20% – 50% of shares and for more than 50%, it is a subsidiary. But then how shall we differentiate between a parent and subsidiary if for eg company A has invested 51% of shares. ( by definition it could be both a parent and a subsidiary, right?)
Question 2: We are aware a company can control even if it has less than 50% voting rights as long as the mentioned conditions (pg 165) are met. Suppose in a question where the conditions are not mentioned but it says a company owns less than 50% of share capital, but more than 50% of voting rights, does it still have control as parent?
Question 3: If ordinary share is $100K and share premium is $50K, a company owns 51% of ordinary share and only 5% of prem share, the overall ownership is less than 50% of the total capital amount (51% * 100K + 5% * 50K) = $53500 out of $150K, does it still control as parent?
April 9, 2012 at 10:53 pm
all consolidation lectures very helpful
March 27, 2012 at 7:33 am
You must be logged in to post a comment.
OpenTuition.com is dedicated to providing all accountancy students throughout the world with the resources they need to study for the major … Learn more
Please log in to get the most from OpenTuition, registration is free!