Topical Terminology > Equity Method Of Accounting
Equity Method of Accounting
For Equity Method of Accounting we have terms and definitions in 2 topics. The topics are Accounting and Accounting Terms.
Equity Method Of Accounting (Accounting) 
Investors cost basis is adjusted up or down (in proportion to the % of stock ownership) as the investee's retained earnings fluctuation; used for long-term investments in equity securities of affiliate where holder can exert significant influence; 20% ownership or greater is arbitrarily presumed to have significant influence over the investee.
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Equity Method Of Accounting (Accounting Terms)
Investors cost basis is adjusted up or down (in proportion to the % of stock ownership) as the investee's retained earnings fluctuation; used for long-term investments in equity securities of affiliate where holder can exert significant influence; 20% ownership or greater is arbitrarily presumed to have significant influence over the investee.
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