A subsidiary (pl. subsidiaries) are entities controlled by a company. A company ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In accounting policy directed by International Financial Reporting Standards (IFRS), the financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Compare with Company or Business Associates and Joint Venture.
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