Osakkuusyhtiöt

Osakkuusyhtiöt are investments in companies in which the investor has significant influence but not control. In practice, this usually means ownership of a substantial but not majority share of voting rights, commonly in the range of 20% to 50%, although influence can arise from other arrangements or agreements that give the investor power over policy decisions.

Key characteristics of osakkuusyhtiöt include the ability to participate in policy decisions and appoint or influence members of the board, without having unilateral control over strategic choices or operations. Factors indicating significant influence can be board representation, participation in budgeting, material intercompany transactions, or shared management.

From an accounting perspective, osakkuusyhtiöt are typically accounted for using the equity method. The investment is initially recognized at cost; subsequently, the investor increases or decreases the carrying amount by its share of the associate’s profit or loss and reduces it by any distributions received. The investor recognizes its share of the associate’s net results in its own income statement, and its share of the associate’s net assets in the balance sheet. Dividends reduce the carrying amount, and impairment tests can be required if there is objective evidence that the investment is impaired.

Osakkuusyhtiöt are distinct from subsidiaries, where control exists, and from joint ventures or other arrangements where control is shared. The concept is widely used in Finnish corporate accounting and reporting and is aligned with international frameworks such as IFRS IAS 28, which governs significant influence and equity-method accounting.