Associates

Which of the following are likely to be accounted for as an associate in the consolidated financial statements of TN? (i) A 25% shareholding in ZT. TN can appoint a director to the board. There are 4 directors on the board in total, and none have control. (ii) A 25% shareholding in ZU. ZU is 70% owned by a company called TU. (iii) A 25% shareholding in ZV. TN have also got an arrangement with other shareholders allowing them access to 55% of the voting rights in TN. A (i) only B (i) and (ii) C (ii) and (iii) D All three ANS A – Item (ii) is likely to be regarded as a financial asset, as TN have no significant influence. Item (iii) is likely to be classed as a subsidiary, as TN seem able to exercise control. Good day,Please i don't understand why the answer isn't B since the holding is more than 20%. I'll appreciate if you can explain better.