The cost and equity methods of accounting are used by companies to account for investments they make in other companies.

Consolidation vs. Equity Method of Accounting. When one company owns a significant stake in another business -- generally defined as at least 20 percent -- it must account for that stake in its ...

With joint ventures, the equity method and proportional consolidation method of accounting could be used. Learn the differences between both and which is used most now.

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 ...

For example, if you currently hold 2,476 shares valued at a per share market price of $105.74, then the market value of your equity stock would be $261,812.24 -- that is, 2,476 x $105.74.

Last August, the American Institute of CPAs released an exposure draft of its updated guidance on the Valuation of Privately Held Company Equity Securities Issued as Compensation.