When there is a relationship between the investing enterprise and the invested enterprise, the investor shall use the equity method to account for the long-term equity investment.
The investing enterprise shall enjoy the rights to the invested enterprise.
1. control
2.*** Same control
3. significant impact 4. When the investment accounts for more than 20% of the total voting capital of the invested enterprise, the investing enterprise shall adopt the equity method to account for the long-term equity investment.
When judging which investor has power over the investee, the factors that the investor considers may include
1, the shareholding ratio of the investor, if it exceeds 50%, it is absolute holding;
2. Composition of the board of directors (number of directors, number of directors and supervisors, and whether there are investors appointed)
3. Composition of management personnel of the invested enterprise (general manager and chief financial officer)
What is the name of the investee whose investment ratio is 30%?
It should be a joint venture. This is the name of the accounting standards for enterprises. The following is the original text of the accounting standards:
The equity investment that the investing enterprise has a great influence on the invested entity is the investment in the joint venture. Significant influence refers to the right to participate in the decision-making of enterprise financial and operating policies, but not to control or jointly control the formulation of these policies with other parties. In practice, the common great influence is manifested in the board of directors or similar authority of the invested unit, and the great influence is implemented through the right to speak in the decision-making process of the invested unit. When an investment enterprise directly or indirectly owns more than 20% but less than 50% of the voting shares of the investee, it is generally considered to have a significant impact on the investee, unless there is clear evidence that it cannot participate in the production and operation decisions of the investee in this case, and it will not have a significant impact.
Advantages and disadvantages of equity investment to the investee.
Want to go public to find investment funds such as PE and VC. You can also look at what kind of investors listed condiment companies are looking for.
If investors come in, it is best to help you open the market or bring you strategic resource integration. It sounds like the other party is also a condiment company. You might as well look at what they do in turn and what the market, products and brands are like. Is it possible for your products to expand their market share and upgrade gradually?