An associated undertaking, or associate, is a company that is not classified as a subsidiary but in which another company or group exercises significant influence. Accounting for associates is regulated by Section 14 of the Financial Reporting Standard Applicable in the UK and Republic of Ireland and International Accounting Standard 28 (IAS 28), Investments in Associates.
The equity method is an accounting technique used to record investments in associated undertakings, reflecting the investor's share of the investee's net assets and performance.
