Equity Method Investments
The equity method of accounting is used for recording investments in which an investor possesses significant influence over the investee, typically signified by owning 20% to 50% of the voting stock. Under this method, the investor recognizes its share of the investee's profits and losses in proportion to its ownership interest, adjusting the carrying value of the investment on their balance sheet accordingly.
Lesson Videos
Equity Method Investments Overview and Objectives
Introduction to Equity Securities
Equity Investments - Level of Influence
Accounting for Investments - Cost and Equity Methods
Available for Sale Equity Securities
Accounting for Investments - Equity Method Example
Absence of Significant Influence by Investor
Trading Equity Securities
Consolidation of Equity Investments - Voting Interest Model
Equity Method Investments Summary
Equity method investments - Practice Questions
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