Equity Method Investments
Free CPA FAR (Financial Accounting & Reporting) lesson in Select Balance Sheet Accounts. 23 min read, ~3,481 words.
Significant influence (presumed 20-50% voting ownership) triggers equity method under ASC 323. Below 20% with no other influence indicators = fair value through net income (ASC 321). Carrying amount rolls: cost + share of investee NI + share of OCI - dividends received - amortization of basis differential. Dividends are...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- II.E3
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