She has 15+ years of experience as a financial writer and technical analyst. Companies use the equity method of accounting to report their investments in other entities where they have significant ...

The equity method and the proportional consolidation method are two types of accounting methods used when two or more companies are part of a joint venture. Which one is used depends on the way ...

The content may be out of date and links may no longer function. The proposed SOP is broader than both SOP 78-9 and APB Opinion no. 18, The Equity Method of Accounting for Investments in Common Stock.

This method is not the only choice, however. For investments where the investor takes a very large stake and has legitimate influence over the company's business, the equity method could be more ...

Upfront liquidity event in the form of a tax-advantaged purchase. Strong potential for tax-deferred “roll-over” equity participation. Incentive and alignment mechanisms for practice physicians’ ...

The Financial Accounting Standards Board has issued two proposed accounting standards updates with the goal of simplifying employee share-based payment accounting and the equity method of accounting ...