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 ...

If your company invests in another firm, whether it's to form a business alliance or just to make a profit, that investment must be accounted for on your balance sheet. Accounting rules dictate the ...

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 ...

FASB’s efforts to simplify accounting continued Tuesday, when the board issued a standard eliminating the requirement to retroactively adopt the equity method of accounting when an investment ...

The Financial Accounting Standards Board has issued two proposed accounting standards updates with the goal of simplifying employee share-based payment accounting and the equity method of accounting ...

FASB proposed a standard Tuesday that would clarify the interaction between its standard on recognition and measurement of financial instruments and its standard on equity method investments. In 2016, ...

FASB is proposing updates to accounting standards that would target complexity in the accounting for stock compensation plans and the equity method of accounting. The board has proposed eight measures ...

FASB’s proposal on simplifying equity accounting garnered 40 comment letters, nearly half from preparers. But while most expressed support for dropping the retroactive adoption requirement, responses ...

Private equity fund accounting is quite complex to other investment vehicles. What separates fund accounting from general accounting is that, while small businesses, for example, make purchases with ...