Records related to the affiliated companies will be made according to the explanations in the uniform chart of accounts below.
Firstly, it should be determined which account to record based on the size of the shares acquired.
240. AFFILIATED SECURITIES
Securities that do not meet the minimum percentage requirements for capital shares in affiliates and cannot be tracked in the affiliates account, but are intended to be held long-term, as well as securities other than shares that are held for long-term purposes, legal obligations, or have lost their convertibility into cash, are tracked in this account.
Operation:
When these securities are obtained or need to be transferred to this group, they are recorded as a debit in the “240. Affiliated Securities Account”; when disposed of, they are recorded as a credit in this account.
241. PROVISION FOR DECREASE IN VALUE OF AFFILIATED SECURITIES (-)
This account is used to track the provisions that need to be allocated when there is a significant or continuous decrease in the market or stock exchange value of affiliated securities, to cover the resulting losses.
Operation:
This is explained in the “119. Provision for Decrease in Value of Securities Account” under current assets.
242. AFFILIATES
This account tracks shares or partnership interests acquired by the business to participate directly or indirectly in the management of other companies and the determination of partnership policies. The affiliates account is used to track capital shares or voting rights that are up to 50% in a partnership. To refer to an affiliate relationship in the partnerships involved, the ownership of voting rights or participation rights must be at least 10% without considering the capital share.
Operation:
When a capital commitment is made for the affiliate or shares are acquired, it is recorded as a debit in the account, and when disposed of, it is recorded as a credit.
__________________ /__________________
242. AFFILIATES
102. BANKS
__________________ /__________________
243. CAPITAL COMMITMENTS TO AFFILIATES (-)
This account tracks capital commitments related to affiliates.
Operation:
When a capital commitment is made for the affiliate, it is recorded as a credit in this account against “242. Affiliates Account,” and as commitments are fulfilled, it is recorded as a debit.
244. PROVISION FOR DECREASE IN VALUE OF AFFILIATES’ CAPITAL SHARES (-)
This account tracks continuous or significant decreases in the market or stock exchange value of the affiliate shares.
Operation:
Provisions for the determined value decrease are recorded as a credit in this account by recording it as an expense in the “654. Provision Expense Account”; when the allocated affiliate share is disposed of or if there is no decrease in value, it is recorded as a debit in the “644. Provisions No Longer Needed Account.”
245. SUBSIDIARIES
This account tracks capital shares of affiliates where the business holds more than 50% of the capital or voting rights or at least the right to select a management majority at this rate. In determining ownership of the subsidiary, the right to select a management majority is the main criterion.
Operation:
When a capital commitment is made for the subsidiary or shares are acquired, it is recorded as a debit in the account, and when partnership shares are disposed of, it is recorded as a credit.
_________________ /__________________
245. SUBSIDIARIES
102. BANKS
__________________ /__________________
246. CAPITAL COMMITMENTS TO SUBSIDIARIES (-)
This account tracks capital commitments related to subsidiaries.
Operation:
When a capital commitment is made for the subsidiary, it is recorded as a credit in this account against “245. Subsidiaries Account,” and as commitments are fulfilled, it is recorded as a debit.
247. PROVISION FOR DECREASE IN VALUE OF SUBSIDIARIES’ CAPITAL SHARES (-)
This account tracks continuous or significant decreases in the market or stock exchange value of subsidiary shares.
Operation:
Provisions for the determined value decrease are recorded as a credit in this account by recording it as an expense in the “654. Provision Expense Account”; when the allocated subsidiary capital share is disposed of or if there is no decrease in value, it is recorded as a debit in the “644. Provisions No Longer Needed Account.”
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