Datterselskapenes

Datterselskapenes is the Norwegian term used to refer to subsidiaries—the legally separate companies in which a parent company holds a controlling interest. Control is typically achieved by owning more than half of the voting shares or by other arrangements that enable the parent to nominate the majority of the board or direct management.

Subsidiaries retain their own legal identity and finances but are usually aligned with the parent’s strategy. They may operate in different sectors or geographies. Depending on jurisdiction, the parent can influence policy, budgets, and management decisions while permitting local autonomy in day-to-day operations.

Financial reporting: Groups that control subsidiaries prepare consolidated financial statements that present the assets, liabilities, income, and cash flows of the parent and its subsidiaries as a single economic entity. Intercompany transactions are eliminated, and non-controlling interests are shown when the parent does not own 100 percent.

Strategic purposes: Creating subsidiaries facilitates market entry, risk isolation, regulatory compliance, and flexible financing. It allows the group to segment operations by country, product line, or function.

Risks and challenges: Managing a portfolio of subsidiaries adds complexity, including governance, transfer pricing, regulatory compliance, currency exposure, and ensuring consistent reporting and controls across entities.

In Norway and in many other jurisdictions, subsidiary structures are common in corporate groups, and parent-subsidiary relationships are governed by national company law as well as international accounting standards such as IFRS or local GAAP.