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IAS 28 states that if an investor holds twenty percent more of the voting power of the invested. ie there is significant influence. The significant influence is evidenced in one of the following.
1. Representation on the board of directors
2 participation in the policy making process etc
The standard requires the use of the equity method of accounting for investment in associated.
when we have voting power more than% of board of directors
and after that we can use the equity method in year end