Associate Company

This query is : Resolved 
 

(Querist)
02 November 2009

Dear All,

Please let me know the meaning of Associate Company. Is it covered under company law.


CA. Aryendra (Expert)
02 November 2009


As per "Accounting Standard 23" Accounting for Investments in Associates in Consolidated Financial Statements
-------------------------------------------
An associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture of the investor.

Common Meaning
----------------
Enterprise over which another enterprise exercises a degree of control which is less than the degree of control exercised over a subsidiary. In accounting, such control is typically taken to mean the ownership of at least 20 percent of voting shares, and some say in the management of the associate enterprises. Associated companies usually have interlocking directorates to ensure they have common policies and complementary objectives.

Ankur Garg (Expert)
03 November 2009

I don't think it covered under company law.



You need to be the querist or approved CAclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :






× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x
  SHARE THIS