6.1 Financial reporting by groups of companies Flashcards
1
Q
What is the definition of a parent company?
A
An entity controlling one or more entities, i.e. through owning a majority of shares, having power to appoint the board, etc.
2
Q
What is a subsidiary company?
A
An entity controlled by another entity.
3
Q
What is an “associate” under IAS 28?
A
An entity over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture.
