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Why are associates distinguished from other investments held by the investor? Discuss the similarities and differences between the criteria used to identify subsidiaries and that

  1. Why are associates distinguished from other investments held by the investor?
  2. Discuss the similarities and differences between the criteria used to identify subsidiaries and that used to identify associates.
  3. What is meant by 'significant influence'?
  4. How does joint control differ from control as applied on consolidation?

*Questions adopted from Company Accounting / Leo, Knapp, McGowan and Sweeting. Eleventh edition. John Wiley & Sons Australia, Ltd

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