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Greetings Sir
With reference to Example 2 of the Lecturer’s Notes under Associates and Joint Ventures, I need to understand why the Lecturer’s answer regarded the acquisition of Antonas as an associate instead of a subsidiary since Jonas acquired it at 100% interest (the whole), I answered the example with confidence that it is a subsidiary, isn’t that an associate is when an entity’s interest is <50 (smaller than 50%)? to my understanding Antonas is a wholly owned subsidiary by Jonas!
Please clarify me.
Hi,
You’ve missed the key piece of information in that it was Jonas and 5 friends who bought all the shares, so therefore Jonas owns 1/6th of the entity and has influence.
Thanks
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