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 ...

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 ...

When one company has an interest in another company it has equity in that company. Under certain circumstances, the appropriate way for the company to account for that investment on its own books is ...

For most investors, the proper way to account for your investing profits and losses is with the cost method of accounting. This method is not the only choice, however. For investments where the ...

The Financial Accounting Standards Board has issued a standards update aimed at clarifying the interaction between the rules related to equity securities, equity method investments and certain ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The Financial Accounting Standards Board has issued an accounting standards update making it easier for companies to transition to the equity method of accounting. Stakeholders told FASB that the ...

FASB took steps to simplify accounting in two areas last week when it voted to direct the board’s staff to prepare a pair of proposed Accounting Standards Updates. Upon written approval by FASB, the ...

FASB continued its efforts to simplify financial reporting by issuing separate proposals designed to simplify the equity method of accounting and improve employee share-based payment accounting. Two ...

For most investors, the proper way to account for your investing profits and losses is with the cost method of accounting. This method is not the only choice, however. For investments where the ...