Equity method

A method of accounting for an associated undertaking or a joint venture in a group of companies.

The purpose is to include in the consolidated group accounts:

(1) the cost of the investment plus

(2) the appropriate proportionate share of post-acquisition profits.

See also

• Associate
• Associated undertaking
• Consolidated group accounts
• Consolidation
• Equity
• IAS 28
• Integral equity method investment
• Joint venture
• Non-integral equity method investment