Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
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
equity method — An accounting method used to reflect an investor s interest in a company. This method is used when the investor owns 20 percent or more of the investee and has significant influence over the investee. Under the equity method, the investment is… … Financial and business terms
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 … Auditor's dictionary
equity method — A method of accounting for associated undertakings in which the investor initially discloses in its financial statements the amount of the investment at its cost, identifying any goodwill arising. In subsequent periods the carrying amount is… … Accounting dictionary
Equity Method — An accounting technique used by firms to assess the profits earned by their investments in other companies. The firm reports the income earned on the investment on its income statement and the reported value is based on the firm s share of the… … Investment dictionary
equity accounting — ➔ accounting * * * equity accounting UK US noun [U] (also equity method [S]) ACCOUNTING ► a method of accounting that takes into account a percentage of profits from shares that a company owns in another company: »The group s equity accounting,… … Financial and business terms
equity accounting — See equity method of accounting. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary
gross equity method — A method of accounting for associated undertakings in which the investor shows on the face of the balance sheet its share of the net amount of the investee s aggregate gross assets and liabilities; in the profit and loss account, the share of the … Accounting dictionary
Equity in income of affiliates — This refers to equity (income) generated from strategic investments in consolidated or unconsolidated affiliate companies, i.e. investments in which the investing company has significant influence over the operating and financial policies of the… … Wikipedia
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
