Significant influence is generally presumed when the investor holds between 20% and 50% of the voting rights; other indicators such as board representation are also considered. Associates are accounted for using the equity method in the consolidated financial statements.
In Turkish tax legislation, the term "iştirak" (participation) may be used with a different meaning; for example, no minimum shareholding is required for the participation exemption.
Source: TAS 28
Related terms
Equity methodAn accounting method in which an investment is initially recognised at cost and subsequently adjusted for the investor's share of the investee's net assets.SubsidiaryAn entity controlled by another entity (the parent).Joint ventureA joint arrangement in which the parties with joint control have rights to the net assets of the arrangement.Participation exemptionThe exemption from corporate income tax of dividends a company receives from its holding in the capital of another fully taxable company.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.
Last updated: October 22, 2026 · This definition is for general information only.