An associate is an investee over which the investor has control.

Question

Quizplus · Accepted Answer

An associate is an investee in which the investor has significant influence but not control. Control is typically associated with ownership of more than 50% of the voting shares, whereas significant influence is associated with ownership of 20-50% of the voting shares or the ability to exert significant influence through board representation or other means of participation in the investee's activities.

An Associate Is an Investee Over Which the Investor Has