Associates
In this session, you'll learn how to identify and account for associates under IFRS standards. You'll explore the key definition of significant influence—the power to participate in financial and operating decisions—and understand why the 20% shareholding threshold is a presumption rather than a rule.
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In this lesson
- 0:00 Associates and joint arrangements overview
- 0:15 What defines an associate investment
- 0:29 Significant influence indicators explained
- 0:57 Applying significant influence in practice
About this lesson
Through a practical worked example, you'll see how factors like board representation, management interchange, and material transactions can establish significant influence even without reaching the 20% threshold. This concept is essential for Strategic Business Reporting and Advanced Financial Reporting papers, where you need to correctly classify investments and apply the equity method in consolidated financial statements.
Duration: 2m
Transcript
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