Associates are those entities in which a company has significant influence,but not control or joint control, over the entity’s financial and operating policies. In International Financial Reporting Standards (IFRS) a company’s interests in Company or Business Associates are are accounted for using the equity method. This means that the interests are initially recognised at cost, including transaction costs. Subsequently, after initial recognition, the consolidated financial statements include the company’s share of the profit or loss and Other Comprehensive Income (OCI) of equity-accounted investees, until the date on which significant influence ceases. Compare with subsidiary, joint venture
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