associated companies

Associated companies are businesses in which one company owns a significant share, usually between 20% and 50%, but does not control it outright. This ownership allows the investing company to influence decisions and operations without having full control. These associations can lead to collaborations and shared resources but also come with financial risks, as the performance of the associated company can impact the investor's financial results. Typically, associated companies are reported in the investor’s financial statements using the equity method, reflecting their share of profits or losses.