The classification of an investment as an associate relies on the existence of significant influence.

Name: The classification of an investment as an associate relies on the existence of significant influence.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The IASB defines an associate as an entity over which the investor has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

The Classification of an Investment as an Associate Relies on the Existence