Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What is diffence between associate & subsideries company ?

Tags: money, careers, education
Asked by Gladiators, 10 Nov '09 05:18 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (2)

1.

An associate company is one in which another company owns/holds a significant percentage of shares, usually 10% or more, however, less than 50% . In this case, an owner does not consolidate the associate's financial statements(viz., Balance Sheet etc) with its own. Ownership of over 50% creates a subsidiary, with its financial statements being consolidated into the parent (holding) company's books.
Answered by Anil K Chugh, 11 Nov '09 04:18 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
 
2.

Both these terms refer to the degree of ownership that a parent company holds in another company. In most cases, the terms affiliate and associate are used synonymously to describe a company whose parent only possesses a minority stake in the ownership of the company. A subsidiary, on the other hand, is a company whose parent is a majority shareholder. Consequently, in a wholly owned subsidiary the parent company owns 100% of the subsidiary. For example, the Walt Disney Corporation owns about a 40% stake in the History Channel, an 80% stake in ESPN and a 100% interest in the Disney Channel. In this case, the History Channel is an affiliate company, ESPN is a subsidiary and the Disney Channel is a wholly owned subsidiary company.
Answered by Deepak Joshi, 10 Nov '09 05:28 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

1. Winston Churchill - This former British Prime Minister did poorly in school and had a speech impediment in his early years.2. Dr. Manmohan Singh fa..more

Answered by Anil K Chugh