What is an investment in accounting? You have probably heard of stock investments, and the term “investment” may lead you to immediately envision stocks, bonds, and mutual funds. While this line of thinking is correct, accountants view investments as this and much...
Investment Accounting Articles
Accounting for Partial Disposals of Equity Method Investments under ASC 323
1. Equity method 2. Equity method of accounting Partial disposal Example: How to account for an equity method disposal resulting in a loss of significant influence 3. Summary 4. Related articlesThis article is part of a series of articles covering equity method...
Equity Method Accounting for Distributions Exceeding the Carrying Value (ASC 323)
1. Equity method 2. Accounting for distributions exceeding carrying value 3. Cash flow classification Cumulative earnings approach Nature of distribution approach 4. Example: Accounting for an equity method investment when distributions exceed the carrying value...
Accounting for Loss from Equity Method Investments
1. Equity method 2. Loss from equity method investments Example of accounting for equity method losses in excess of investment 3. Summary 4. Related articlesThis article is part of a series of articles covering equity method accounting in accordance with ASC 323...
Goodwill and Basis Differences in the Equity Method of Accounting (ASC 323)
1. Equity method of accounting when basis differences exist What are basis differences and how do you identify them? How do basis differences impact equity method accounting? An example of equity method accounting with basis differences 2. Summary 3. Related...
The Equity Method of Accounting for Investments and Joint Ventures under ASC 323
1. What is the equity method of accounting? 2. When do you apply it? 3. How to determine if the equity method is applicable 4. Accounting for an equity method investment 5. Required disclosures 6. Example: Accounting for an investment using the equity method 7....