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Hello
My understanding is that an associate has significant influence and a parent has control, but i am still a bit confused, how do i differentiate the 2 in terms of % ownership?
Regards
Hi,
It usually comes down to more than just a % ownership but if >50% it gives control and if >20% and <50% then it is an associate. However the technical definitions are that control is the power to direct the activities and significant influence is the power to participate in the activities. Therefore there is more than just the % to consider, so if we own 19% but have directors on the board we may still have influence.
Thanks
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