Under what circumstances is significant influence assumed in intercorporate investments, according to the chapter?

Significant influence is generally assumed when a company holds an ownership interest between 20% and 50%. Additionally, significant influence can be indicated by representation on the board of directors and participation in policymaking, even if the ownership interest is below 20%.

Significant influence is typically assumed when a company owns between 20% and 50% of another company's equity. However, it can also be established through other means, such as having representation on the board of directors or involvement in the policymaking process, which can indicate significant influence regardless of the percentage of ownership. For example, Topmaker demonstrated significant influence over Rainer despite having only a 15% equity interest due to its board representation and policymaking participation.