CA Inter P2 · Chapter 1 · Question 6 of 9
Under the Explanation to section 2(6), 'significant influence' for identifying an associate company means control of at least ______ of the total voting power, or control of or participation in business decisions under an agreement.
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Twenty per cent
Explanation
The Explanation to section 2(6) defines significant influence as control of at least 20% of the total voting power, or control of or participation in business decisions under an agreement. An associate company also includes a joint venture company.
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