The investor does not need to hold shares in an associate, but where more than 20% of the voting power is held, significant influence is presumed to exist.

Question

Quizplus · Accepted Answer

According to accounting standards, if an investor holds more than 20% of the voting power in an entity, significant influence is presumed to exist even if the investor does not hold any shares in the entity. Therefore, the statement is true.

The Investor Does Not Need to Hold Shares in an Associate