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What is the difference between subsidiaries and affiliates company?

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Question added by Ahmad Al Zoubi CMA CertIFR , Accounting Manager , Abdul Latif Jameel
Date Posted: 2013/09/23
Zafar Iqbal
by Zafar Iqbal , Teacher (Pak Studies) Subject Specialist , Home Tutor

Subsidairy Company is a company having more than half of its stock owned by another company Affiliate Company is a type of inter-company relationship in which one of the companies owns less than a majority of the other company's stock, or a type of inter-company relationship in which at least two different companies are subsidiaries of a larger company.

Muhammad Waqas
by Muhammad Waqas , Accountant , Rafiq & Sons

1. Both subsidiary and affiliate refer to a company which has a portion of its stocks controlled by a main company.

 

2. Subsidiary companies have majority of their stocks controlled by the main company. Wholly owned subsidiary companies have all of their stocks controlled by the main company.

 

3. Affiliate companies have only a minor portion of their stocks controlled by the main company.

suhaila albateeh
by suhaila albateeh , Senior Accuntants , Eetisalat / ADAC

subsidairy compamy is the company is owned by anthore company .

Affiliate company is inter company relationshipe in which the company owns less than a majority of other company is stock.