- equity method
- A means of accounting for *business combinations in contexts where an investment in an organization is too small to effect control. The equity method operates through (i) the inclusion of an appropriate proportion of the organization’s *income in the *income statement of the investor and (ii) the inclusion of the original amount invested (plus a share of *retained earnings) in the investor’s *balance sheet. See also *consolidation accounting techniques.
Auditor's dictionary. 2014.
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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. Proportional share of associate company s net income increases the investment, and proportional… … Wikipedia
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method — meth‧od [ˈmeθəd] noun [countable] a planned way of doing something, especially one that a lot of people use: method of • It is best to consider all methods of figuring your annual income tax before deciding on any one option. method for • A buy… … Financial and business terms
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equity accounting — See equity method of accounting. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary