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 ...

Managing the financial accounts for one company is tough. If your business invests in another business, keeping the books becomes even more complicated. If, say, you buy one of your suppliers, do you ...

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 ...

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 ...

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 ...

Understanding intercorporate investments is key to determining the future prospects of any business. Learn how they impact business value with these accounting insights.

FASB issued a standard Thursday that is intended to clarify the interaction between accounting standards related to equity securities, equity method investments, and certain derivatives. The board ...

Learn how to identify creative accounting practices that manipulate balance sheets, impacting assets, liabilities, and equity for perceived financial performance.