- This topic has 3 replies, 2 voices, and was last updated 1 year ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Parent-Subsidiary’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Parent-Subsidiary
Hello Sir. Why does “Greater than 50% of the preference shares being held by an investor” signify a parent-subsidiary relationship? Isn’t Is only >50% equity shares (+control)?
Owing >50% of the equity shares would always mean a parent-subsidiary relationship.
Owning >50% of the preference shares does not create a parent-subsidiary relationship (just as is stated in the ACCA specimen exam).
Thank you Sir.
You are welcome