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A collapse zone must be established when:
Significant Influence
Significant influence refers to the power to participate in the financial and operating policy decisions of an investee without having full control or joint control.
Control
In management and accounting, Control refers to the processes, policies, and procedures implemented by an organization to ensure its objectives are met, including accuracy of financial reporting and compliance with laws.
Investment in Associates
An investment in another company where the investor has significant influence, typically reflected by ownership of 20% to 50% of voting stock.
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