Asked by
Viktoriia Stelmashchuk
on Nov 14, 2024
Verified
When an investee can be significantly influenced, it is known as an associate.
Significantly Influenced
A situation where an entity has a notable but not controlling interest in another entity, impacting its financial and operating policies.
Associate
An entity in which an investing entity has significant influence, typically through owning a substantial but not majority shareholding, usually between 20% and 50%.
- Understand the impact of influence level on the categorization of investments.
- Discern between strategic and non-strategic investments, noting the distinct purposes each type of investment fulfills.
Verified Answer
LB
Learning Objectives
- Understand the impact of influence level on the categorization of investments.
- Discern between strategic and non-strategic investments, noting the distinct purposes each type of investment fulfills.