The cost and equity methods of accounting are used by companies to account for investments they make in other companies. In general, the cost method is used when the investment doesn't result in a ...

The equity method of investment is a method used by companies to account for investments in other companies where they hold significant influence, but not full control. Typically, this is applied when ...

A corporation initially books the investment in another company's shares as a noncurrent asset with a value equal to the purchase cost. Whenever the investee issues an earnings report, the investor ...

The more we consider what the Financial Accounting Standards Board accomplished with SFAS 159, the more we're warming up to the sea change it represents. This standard, titled "The Fair Value Option ...

Managing the financial accounts for one company is tough. If your business invests in another business, keeping the books becomes even more complicated. If, say, you buy one of your suppliers, do you ...