Subsidiaries of an associate or joint venture

Learning objectives

• Determine whether a subsidiary of an associate is related to the investor that has significant influence.L2, L3

Normative references

• IAS 24 §12In the definition of a related party, an associate includes subsidiaries of the associate and a joint venture includes subsidiaries of the joint venture; therefore a subsidiary of an associate and the investor that has significant influence over that associate are related to each other.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The investor that has significant influence over an associate is not related to that associate's subsidiaries.L2