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sociedades equivalencia

English translation: share of associated company losses

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:sociedades equivalencia
English translation:share of associated company losses
Entered by: Annette Flear
Options:
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19:57 Aug 8, 2002
Spanish to English translations [PRO]
Bus/Financial
Spanish term or phrase: sociedades equivalencia
This comes from an Annual Report detailing the Group financial results.

'Participación en pérdidas sociedades equivalencia' This appears under the heading 'RESULTADOS FINANCIEROS NEGATIVOS'
Annette Flear
Local time: 02:20
share of associated company losses
Explanation:
If you look at a number of English Annual Reports (under consolidated profits and losses), this term (or variations of it) are used in the same section you describe above.

Here are some English Annual Reports:
---------------------------------------
Operating profit 44,270 33,813
Share of associated company profits 86 -
Profit on sale of investment properties (note 4) 709 4,555
---------------------------------------
Share of results of associated company - 174,469
Profit before Taxation and Exceptional Item 3 2,198,393 2,475,282
---------------------------------------
Share of Associated Company's results (3) (1) -
---------------------------------------


Here are some Spanish versions, with the term appearing in the same area:


---------------------------------------
Beneficio/Perdida soc. equivalencia (1,5) (1,0)
Intereses netos (15,7) (14,9)
Diferencias de cambio (1,8) 0,1
Resultado financiero (17,5) (14,8) 18,5%
---------------------------------------
RESULTADOS FINANCIEROS POSITIVOS/(NEGATIVOS) (461) (858)

Participación en beneficios en Sociedades en equivalencia 323 293

Participación en pérdidas en Sociedades en equivalencia - 4
---------------------------------------


I hope this helps clarify the proper use of the term.
Selected response from:

Russell Gillis
Local time: 19:20
Grading comment
Thanks Russell & to everyone else for their suggestions!
4 KudoZ points were awarded for this answer

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Summary of answers provided
5 +2share of losses of associates
Nikki Graham
4 +3share of associated company losses
Russell Gillis
4 +2holding in companies according to the equity method
Maria
4 +1share of losses of companies per equity methodPaul Slocomb
4share of companies' losses per equity method
Сергей Лузан


Discussion entries: 1





  

Answers


21 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
holding in companies according to the equity method


Explanation:
This is the definition given by EurodicAutom:
Subject - "Economics (sn: macroeconomics; nt: generic field; rf: Commerce and Movement of Goods, see: CO; Financial Affairs - Taxation - Customs, see: FI)" (=EC)
- "Financial Affairs - Taxation & Customs (sn: microeconomics II; nt: further breakdown of ECF)"(=FI)



(1)
PHRASE participación en sociedades en equivalencia

Reference DOCE C 275/1996



(1)
PHRASE holding in companies according to the equity method

Reference OJEC C 275/1996



Maria
Local time: 20:20
Native speaker of: Native in SpanishSpanish
PRO pts in pair: 920

Peer comments on this answer (and responses from the answerer)
agree  MikeGarcia: If you and your sources say so,it's OK for me,but I swear I've never heard this term in 30 years as a Banker and 26 as a Lawyer.Probably utilized far away from Argentina.
4 mins

agree  Сергей Лузан: with Miguel (based on lesser & shorter experience of Ph. D in Econ & interpreter, of course). Probably utilized far away from Russia.
8 hrs
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3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
share of associated company losses


Explanation:
If you look at a number of English Annual Reports (under consolidated profits and losses), this term (or variations of it) are used in the same section you describe above.

Here are some English Annual Reports:
---------------------------------------
Operating profit 44,270 33,813
Share of associated company profits 86 -
Profit on sale of investment properties (note 4) 709 4,555
---------------------------------------
Share of results of associated company - 174,469
Profit before Taxation and Exceptional Item 3 2,198,393 2,475,282
---------------------------------------
Share of Associated Company's results (3) (1) -
---------------------------------------


Here are some Spanish versions, with the term appearing in the same area:


---------------------------------------
Beneficio/Perdida soc. equivalencia (1,5) (1,0)
Intereses netos (15,7) (14,9)
Diferencias de cambio (1,8) 0,1
Resultado financiero (17,5) (14,8) 18,5%
---------------------------------------
RESULTADOS FINANCIEROS POSITIVOS/(NEGATIVOS) (461) (858)

Participación en beneficios en Sociedades en equivalencia 323 293

Participación en pérdidas en Sociedades en equivalencia - 4
---------------------------------------


I hope this helps clarify the proper use of the term.

Russell Gillis
Local time: 19:20
Native speaker of: English
PRO pts in pair: 667
Grading comment
Thanks Russell & to everyone else for their suggestions!

Peer comments on this answer (and responses from the answerer)
agree  Mary Bauer: definately
4 hrs
  -> Thanks Mary!

agree  Nikki Graham: this works, but I prefer the variation I've suggested (sorry)
5 hrs
  -> No problem Nikki. Rarely is there only one right answer! :)

agree  Сергей Лузан: Seems to be Northamerican (US or Canadian).
5 hrs
  -> Thanks Sergey!
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6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
share of losses of companies per equity method


Explanation:
Each of the first two answers has it partly right. They need to be put together.

--------------------------------------------------
Note added at 2002-08-09 05:22:55 (GMT)
--------------------------------------------------

I\'m no financial wizard, but here\'s how I understand the alternatives.

Company A forms a wholly-owned subsidiary B, contributing 1000 to its capital. A records an investment of 1000 on its books.

In the first year, B incurs a startup loss of 50. How should A\'s investment in B now be reflected in A\'s financial statements? If A uses the historical cost method of accounting for such investments, the amount appearing on its books doesn\'t change - it remains at 1000. If, on the other hand, A uses the equity method of accounting, its investment in B will be reduced by 50 to 950.

In the second year, B takes off and earns a profit of 300, and distributes a dividend of 150 to A. Now how should A\'s investment in B be valued in its financial statements? If it uses the historical cost method, it includes the 150 dividend in its income statement, but the investment remains at 1000 on its balance sheet. If it uses the equity method, it also accounts for the 150 dividend in its income statement, but the value of its investment in B is adjusted to 1100 (950 + 300 - 150).

It gets a lot more complicated than this suggests, but that\'s the basic idea.

Actually, one could translate \"\'participación en pérdidas sociedades equivalencia\" without any reference to the equity method, because the losses wouldn\'t be taken into account if the equity method were not being used. That is, the translation could be left at just \"share of losses of companies\".

Paul Slocomb
Local time: 20:20
Native speaker of: English
PRO pts in pair: 351

Peer comments on this answer (and responses from the answerer)
agree  Сергей Лузан: Have heard it, for sure.
1 hr
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8 hrs   confidence: Answerer confidence 5/5 peer agreement (net): +2
share of losses of associates


Explanation:
This is the term I use to translate this, which seems to be quite common (180 hits in Google)

As has been said before, this is indeed
referring to the equity accounting method = a practice of showing in the company's accounts a share of the undistributed profits of another company in which it holds a share of the equity.

a method of accounting for associates in which the investor initially discloses in its financial statements the amount of the investment at its cost, identifying any goodwill arising. In subsequent periods the carrying amount is adjusted by:
1. the investor's share of the results of the associate, less any goodwill, amortisation or write-off.
2. the investor's share of any relevant gains or losses and any other changes in the investee's net assets.
The share of the associates' results is included immediately after the group operating profit in the consolidated profit and loss account. (Oxford dictionary of accounting)

This transaltion doesn't come from any dictionary, but from research done when I have had to translate financial statements, comparing the Spanish original with accounts found in Google.

--------------------------------------------------
Note added at 2002-08-09 04:24:12 (GMT)
--------------------------------------------------

P:S:
Wanted to add that although this is the equity method, it\'s not necessary to put that in the translation! It\'s understood.

--------------------------------------------------
Note added at 2002-08-09 05:36:03 (GMT)
--------------------------------------------------

It is understood, in this case, that the associates are associated undertakings. You have to bear in mind that terms are usually short and snappy in financial statements, and that people know what they\'re talking about in them!


    Reference: http://www.google.com/search?q=%22share+of+losses+of+associa...
Nikki Graham
United Kingdom
Local time: 02:20
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 5584

Peer comments on this answer (and responses from the answerer)
agree  Сергей Лузан: Well, but associates are not necessarily entities, are they?
7 mins
  -> Thanks, see note above

agree  Herman Vilella
4 days
  -> Thank you
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8 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
share of companies' losses per equity method


Explanation:
Just edited Paul's idea.
Good luck, Annette Flear!

Сергей Лузан
Russian Federation
Local time: 04:20
Native speaker of: Native in RussianRussian
PRO pts in pair: 450
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