Subsidiary and associate

What a company is called depending on how much of it is owned

In detail

Own more than half the votes and it is a subsidiary, whose results are added in full. Between 20% and 50% it is an associate, and only the owner's share of the profit is taken in. Which one it is changes the size of the numbers on the accounts.

Example

A 40% stake in a company earning $10 million brings in $4 million.

Related terms

Holding company Segment information Goodwill

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