osakkuusyhtiöissä

Osakkuusyhtiöissä, or associated companies, refers to a business relationship where one company holds a significant but not controlling influence over another company. This influence is typically established through a substantial equity stake, generally ranging from 20% to 50% of the voting stock. Unlike a subsidiary, where the parent company has a controlling interest and consolidates its financial statements, an associated company is accounted for using the equity method.

Under the equity method, the investor company records its investment at cost initially. As the associated company recognizes profits or losses, the investor company adjusts the carrying amount of its investment accordingly. Dividends received from the associated company reduce the carrying amount of the investment. The investor's share of the associate's profit or loss is recognized in the investor's own profit or loss statement. This method reflects the economic reality that the investor has a stake in the associate's performance, even without direct control.

The presence of an associated company implies a degree of strategic alignment and cooperation between the entities. This relationship can arise from joint ventures, strategic partnerships, or simply as a means for one company to gain access to new markets, technologies, or resources through another. Transparency and disclosure are important for investors to understand the nature and impact of these associated company relationships on the overall financial health of the investor.