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Ask the Tutor ACCA SBR

Exactly 50% of voting right - subsidiary or associate?

HHUNMIN6y ago
Hi Mike, Thank you for your SBR lactures. While studying chapter4 Basic Group Structure, I come across the idea of two companies, A and B owning exactly 50% of voting power of company C. in this case, Can both A and B form a group structure with C?
stephenwidbergstephenwidbergTutor6y ago#1
Likely to be joint venture - if each party has right of veto. Or an associate if each party can exercise significant influence. So, either way = equity accounting. Unlikely to be a subsidiary.
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