What is Associate (dependent company)?

A company whose decisions another company can influence through its participation in the charter capital, but which it does not control as it would a subsidiary. NAS No. 8 calls it an "organization under influence (dependent)" and states that it does not apply to accounting for such investments (paragraph 3). An investment in an associate is kept in account 0630, and current settlements with it in account 4120 (NAS No. 21, paragraphs 56 and 177).