Account / Law help : Group company & related party

[Tonto]

Group එකක් කිව්වම ඒකෙ අන්තර්ගත වෙන්නෙ Parent and Subsidiary විතරද.. Associate උනත් Group එක අතුලෙ විදිහට ගන්නවද
Group කියන එකට එකක් සීමාවක් තියෙනවද?
Parent, Grand parent,,ultimate parent කියන්නෙ එකම එකක්ද නැත්නම් ලොකු ultimate group එකේ කොටස්ද

Say...
A ltd ,B ltd and C ltd are subsidiaries of X parent... P is a Associate of X
X, D, E.F are subsidiries of Y
Y, G,H are sunsidiaries of Z.....X..Y...Z walata kiyanne mona kiyalada??? parent..grand perent..ultimate patent da...ewath wenama Group widihata gannawada..nathnam Z group eke sub group da

 

[Vitamin K]

up

 

[kinkon]

බම්ප්

 

[VPS09]

Z is the ultimate parent. No term like Grand parent. Others are Subsidiaries and Parents based on where they are stood at in the hierarchy.

 

[Tonto]

Z is the ultimate parent. No term like Grand parent. Others are Subsidiaries and Parents based on where they are stood at in the hierarchy.

""Say...
A ltd ,B ltd and C ltd are subsidiaries of X parent... P is a Associate of X
X, D, E.F are subsidiries of Y
Y, G,H are sunsidiaries of Z.....X..Y...Z walata kiyanne mona kiyalada??? parent..grand perent..ultimate patent da...ewath wenama Group widihata gannawada..nathnam Z group eke sub group da ""


Thank you friend...
if Ultimates parent's down layer level subsidiary(A Ltd) has a associate company P...,,says above A ltd has 30% of P ltd..then P also a member of this group ? As there are several groups like X's group..Y's group..Z's group.... all these are called groups?? or else.....

 

[VPS09]

There is no middle groups. There can be only 1 group. P does not consider as a comapny in this group by having mere 30% shares. But if this group has significant power over P, then Yes it is included to the group.

 

[Tonto]

There is no middle groups. There can be only 1 group. P does not consider as a comapny in this group by having mere 30% shares. But if this group has significant power over P, then Yes it is included to the group.

okkk..Thanks for replying .
As per LKAS 28 anf IFRS if interest of more than 30% then there is a significant interest ? if some directors also common the there is Significant interest plus control ?

LKAS Significant influence

6
If an investor holds, directly or indirectly (eg through subsidiaries), 20 per cent or more of the voting power of the investee, it is presumed that the investor has significant influence, unless it can be clearly demonstrated that this is not the case. Conversely, if the investor holds, directly or indirectly (eg through subsidiaries), less than 20 per cent of the voting power of the investee, it is presumed that the investor does not have significant influence, unless such influence can be clearly demonstrated. A substantial or majority ownership by another investor does not necessarily preclude an investor from having significant influence.

 

[VPS09]

okkk..Thanks for replying .
As per LKAS 28 anf IFRS if interest of more than 30% then there is a significant interest ? if some directors also common the there is Significant interest plus control ?

LKAS Significant influence

6
If an investor holds, directly or indirectly (eg through subsidiaries), 20 per cent or more of the voting power of the investee, it is presumed that the investor has significant influence, unless it can be clearly demonstrated that this is not the case. Conversely, if the investor holds, directly or indirectly (eg through subsidiaries), less than 20 per cent of the voting power of the investee, it is presumed that the investor does not have significant influence, unless such influence can be clearly demonstrated. A substantial or majority ownership by another investor does not necessarily preclude an investor from having significant influence.

To be included in a Group Parent should have Control over such an Associate.

Significant influence and Control two different things.
Refer SLFRS 10 for "Control "

 

[Tonto]

To be included in a Group Parent should have Control over such an Associate.

Significant influence and Control two different things.
Refer SLFRS 10 for "Control "

Thanks you friend,,,that means it must not be an Associate, but must be a subsidiary to be included in a group


I had to do Surcharge tax illustration to my younger brother,,,so then associate doesn't need to pay unless exceed 2Billion