Equity method

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Revision as of 21:11, 1 September 2014 by imported>Doug Williamson (Punctuate for greater clarity, link with Associated undertaking page.)
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A method of accounting for an associated undertaking 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