Equity method in accounting is the process of treating equity investments, usually 20-50%, in associate companies. The investor keeps such equities as an asset.
Equity Method
An accounting technique used by an investor who owns 20% to 50% of the voting shares / voting common shares. See cost method and consolidated subsidiary accounting.
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equity method
means of accounting used by an investor who owns between 20% and 50% of the voting common stock of a company.
Equity Method of Accounting
Investors cost basis is adjusted up or down (in proportion to the % of stock ownership) as the investee's retained earnings fluctuation; ...
Equity method
A method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee.
Equity Method
Accounting method for an equity security in cases where the investor has sufficient
voting interest to have significant influence over the operating and financial policies of an
investee.
equity method
An accounting method used to reflect an investor's interest in a company. This method is used when the investor owns 20 percent or more of the investee and has significant influence over the investee.
Equity Method
An accounting method used to determine income derived from a company's investment in another company over which it exerts significant influence.
Escrowed or Pooled Shares ...
Equity method - Accounting method used to record investments in associated companies.
Equity share capital - When the capital is raised by a firm via the issue of common shares.
Equity method
valuation method used for interests held in associated companies based on the proportion of the stake of the company's shareholders' equity held and the proportionate share in that company's net income for the year
Equity ratio ...
Equity method of accounting for investments
The equity method of accounting for investments involves initially recording the investments at cost, then revenue is recorded as the investor’s share of earnings, increasing the investment account; ...
The Equity Method Of Accounting
An investor may acquire enough ownership in the stock of another company to permit the exercise of "significant influence" over the investee company.
For financial statement purposes, investments in joint ventures are accounted for by each member of the joint venture under the cost method, the equity method, as a pro rata share, ...
APB 18 - the Accounting Principles Board Equity Method of Accounting for Investments in Common Stock.
API - Is the American Petroleum Institute.
API GRAVITY - Gravity (weight per unit volume) of oils as measured by the API scale.
investee The company in which an investment is held. Often used to describe an equity method investment, in which the investor reports a share of the investee's net income.
 See also: Significant influence, Expense, Accounting method, Values, Net assets
  
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