associates, joint ventures and liquidation Flashcards
1
Q
what is an associate
A
An associate is an entity, over which the investor has significant influence.
2
Q
define significant influence
A
the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over these policies
3
Q
indicators of significant influence include
A
- board representation
- patricipation in decisions about dividends / profit retentions
- exchange of managerial staff
4
Q
ROLES AND POWER OF LIQUIDATOR
A
o Roles & Powers of Liquidator
1. Take possession of the company’s assets
2. Realise the assets
• May carry on the business as necessary until the beneficial disposal of assets
• Determine the creditors & order of priority
