Is a company an associate company if the acquired shares are less than 20 percent but significant influence can be exercised over it?
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Associate companies
5y ago#1Yes it is.
Are there two conditions for a company to be an associate company or just one. In the revision kit, it says that there has to be significant influence as well as 20 to 50 percent shares but in the notes it says that all that is needed for the exam is the 20 to 50 percent shares for it to be an associate.
5y ago#3There has to be significant influence.
Owning more than 20% is the usual criteria but it does not have to be 20%.
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