1. What is difference between Subsidiary company & Associate company (associate concern) ?
2.How sister company differs from subsidiary company & associate company ?
3. Which section/act defines siste concern & associate concern?
pls guide
Menu
Subsidiary & associate companies
Replies (2)
A company is siad to be subsidary when it is controlled by parent i.e when it holds 51% of subsidarys capital (both equity and preference put to getther).A concern will be an associate when it holds significant influence ie.20% and more than 20%.Significant influence means power to control the operating and Financial policies
I dont Know what is sister concern I think Companies within the group is termed as such.
About Associates You can Refer AS-23 and AS-18
A sister concern means an concern which comes under the same management but there is no control amongst the companies in one another. For instance Tata motors & Tata Steel are sister concerns as they are under the same maangement but do not have any stake/control between them.
What Sivaram has said about subsidiary & associate companies I agree with him.
Recent Topic
- ITR-3 Filling issues
- PF withdrawal and tax liability
- Sale of Goods or Services?
- ITR form query
- Credit against paud RCM on rent
- Dividend difference in 26AS, AIS, TIS
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
Related Topics
CAclubindia
