An accounting method used to determine income derived from a companys investment...
is a method of accounting for investments in associated companies.
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 originally recorded on the books of the investor at its cost. Subsequently, the asset value of that investment on the investor's financial statements is increased or decreased by the investor's proportionate share of the increase or decrease in the investee's net worth.
Investments accounted for by the equity method means that where the control exists of the company invested in then the financial accounts are consolidated or added together as one entity and the minority interest (i.e. shares that are not owned) separated as a single item in the shareholders equity account. Financial assets are financial instruments resulting from contracts that give rise to both a financial asset of one entity and a financial liability of another entity. This usually means derivatives (IAS definition)
Method of accounting whereby an investment (in a joint venture or an associate) is initially recognized at cost and subsequently adjusted for any changes in the investor's share of the joint venture's or associate's net assets (i.e. equity). The income statement reflects the investor's share in the net result of the investee.
Valuation of associated enterprises in the amount of their proportionate stockholders' equity.
Valuation method for shares in companies over whose business policies a consolidated company has significant influence (associates). Under the equity method, the investor's share of the net income/loss of the investee is credited/charged to the carrying amount of the investment. Distributions reduce the carrying amount by the investor's proportionate share of the distribution.
A method of accounting whereby the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in VNU’s share of net assets of the investee. VNU’s profit or loss includes VNU’s share of the profit or loss of the investee.
A method of accounting for influential but noncontrolling long-term investments in which the investment is initially recorded at cost and then adjusted for the investor's share of the company's net income or loss and subsequent dividends.
The equity method of accounting for an investment means an investment is initially recorded at cost, and adjustments are made to include our share of the investment's net earnings or losses.
Valuation method used to account for holdings in companies whose business policy can be significantly influenced (associated companies).