Management needs to know that the owner investor can get information related to both the success and failure of management risk mitigation efforts. The current IASC FI rewards speculation. An associate is an enterprise, other than a subsidiary or joint venture, over which the investor has significant influence.
Significant influence means the power to participate in financial and operating policy decisions.
Such influence is presumed to exist if the investor owns more than 20 per cent of the associate. Ideally, effective IASC should have identified these discrepancies and raised questions. To date, there has been no serious examination of how China can increase output with less energy in 1-2Q99. Currently, GAAP is more useful for investors to assess management ability, risk mitigation, and asset values. IASC contracits the spirit of GAAP in disclosing controlling interests in entities.