Equity Method Investments

Free CPA FAR (Financial Accounting & Reporting) lesson in Select Balance Sheet Accounts. 25 min read, ~3,684 words.

Significant influence (presumed 20-50% voting ownership) triggers the equity method under ASC 323. Below 20% with no other influence indicators is 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...