Associate
Financial Dictionary — Consolidation & Groups
Definition
An associate is an entity over which the investor has significant influence but not control, generally indicated by owning 20% to 50% of the voting power.
Detailed Explanation
An associate is an investee where the investor has significant influence (not control), often evidenced by 20%–50% voting power, and is usually accounted for using the equity method.
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **Associate** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.