Video: Equity Method Investments Summary

In this lesson, Nick Palazzolo, CPA, walks through the intricacies of equity method journal entries, emphasizing the need to be adept at calculating the fair value difference and goodwill. By exploring the financial nuances when a company acquires a significant but not controlling interest (20% to 50%) in another entity, he clarifies how to determine the appropriate investment-related amounts for the acquirer's financial statements. Nick ensures that every detail, from which accounts to use to the methods of accounting for these investments, is thoroughly explained, setting up for a confident application of these concepts in practice.