To account for this type of investment, the purchasing company uses theequitymethod.
From
Wikipedia
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Associates are accounted for using theequitymethod.
From
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.
Under theequitymethod, the purchaser records its investment at original cost.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.
The amendment would require companies using theequitymethodof accounting to follow the relevant accounting standard.
From the
Hansard archive
Example from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0
That subsidiary will be incorporated in the consolidated accounts under theequitymethod, exactly as though it were an associate company, rather than consolidated in full like other subsidiaries.
From the
Hansard archive
Example from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0
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