associateettevõtete

Associateettevõtted, often translated as associated companies or affiliated companies, refers to entities that are linked by a significant, but not controlling, influence. This connection is typically established when one company holds a substantial equity stake in another, usually between 20% and 50% of the voting power. While this stake is large enough to allow for material participation in the financial and operating policies of the investee, it does not grant the investor full control.

The concept of associateettevõtted is crucial in accounting and financial reporting, particularly under International Financial Reporting Standards (IFRS). When a company has significant influence over an associate, it must use the equity method of accounting. This method involves recording the investment at cost initially and then adjusting it to recognize the investor's share of the investee's profit or loss. Dividends received from the associate are treated as a reduction of the investment's carrying amount.

The existence of an associate relationship implies a degree of collaboration and shared strategic interests between the parent and the associated company. It differs from a subsidiary, where the parent has control, and from a simple investment, where there is no significant influence. Determining whether significant influence exists involves considering factors beyond just the percentage of ownership, such as representation on the board of directors, participation in policy-making processes, and material inter-company transactions. Understanding associateettevõtted is vital for accurately reflecting the financial performance and position of companies involved in such relationships.