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1586 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Significant influence

Accounting

The power to participate in the financial and operating policy decisions of another company without controlling it — presumed where twenty per cent or more of the voting rights are held, and rebuttable on the facts in either direction.

In plain terms

The middle of the three treatments. Below it a stake is carried at a value; above it, at control, the whole investee is consolidated. Here you get one line of profit and nothing else.

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Associate company

Accounting

A company in which there is significant influence but not control.

In plain terms

Included by the equity method — a share of profit rather than line-by-line consolidation.

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Indian stock market glossary · Market Vidyalaya