UK Consolidation


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X company (UK) set up a company in Thailand mainly to expand its Asian presence. Due to legal restrictions in Thailand regarding foreign ownership, X company only owns 49%. The other 51% is fully owned by one Thai national (a silent partner). Now, the question here is, can X company consolidate its Thailand operations even if it it does not own more than 50% of the entity?
Facts that can support it is as follows:
1. The financial reporting (including oversight) is being carried by X company.
2. Exercise of control is not conclusive since it just legally owns 49%.

Should I treat this Investment in Associate instead? or should I push through with the consolidation (cause in fact it is formed to expand X company's operations?)

Thanks!
 
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bklynboy

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We had Thai presence and limited to 49%. We controlled the company however so were required to consolidate at least for us gaap you need to assess control to decide on this.
 

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