All articles in this category pertain to the equity method of accounting. The equity method is an accounting technique for investments. It is used to record the income a company earns from investing in another company.
An equity method investment represents partial ownership in an entity and gives the investor influence over the operating decisions of the entity in which they have invested. ASC 323 Investments – Equity Method and Joint Ventures provides guidance for determining if your investments qualify for equity method accounting and how that process works under US GAAP.
Learn more about the equity method of accounting below.