Investopedia

Equity Method Accounting Explained: Definitions & Examples

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Nasdaq

Understanding Private Equity Fund Accounting

Private equity fund accounting is quite complex to other investment vehicles. What separates fund accounting from general accounting is that, while small businesses, for example, make purchases with ...
The Wall Street Journal

FASB Issues Proposed ASU to Amend Equity Method Accounting

The FASB has issued a proposed ASU¹ on equity method accounting as part of its simplification initiative (i.e., the Board’s effort to reduce the cost and complexity of current U.S. GAAP while ...
Houston Chronicle

What Factors Are Used to Determine if the Equity Method of Accounting Is Appropriate?

A corporation initially books the investment in another company's shares as a noncurrent asset with a value equal to the purchase cost. Whenever the investee issues an earnings report, the investor ...
The Wall Street Journal

Accounting Brief: Distinguishing Liabilities From Equity

Entities raising capital must apply the highly complex, rules-based guidance in U.S. GAAP to determine whether the securities they issue are classified as liabilities, permanent equity, or temporary ...