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Former userFormer user8y ago

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KimKimTutor8y ago#1
Since 100% of a subsidiary is consolidated the actual % shareholding is irrelevant when assessing the materiality of a line item in the subsidiary's financial statement (i.e. the amount that will be consolidated). So in your example I would say 16%. However, since an associate is NOT consolidated, only the 30% investment is relevant when assessing materiality from the group's perspective. So in your example 12%.
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