Significant influence of another company generally occurs when the investor owns between 25% to 45%, due to this relationship the investor is required to issue consolidated financial statements.

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Significant influence typically occurs when an investor owns 20% to 50% of another company, but it does not require consolidated financial statements; instead, the equity method is used for accounting. Consolidated financial statements are required when there is control, usually indicated by ownership of more than 50%.

Significant Influence of Another Company Generally Occurs When the Investor