If you hold at least 20 percent of the investee's shares, use the equity method unless you can prove you have no influence over the investee – for example, if the investee treats you hostilely ...

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.

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 ...

For example, if an investment company owns 30% of another firm and that firm earned $10 million in profits in a given year, the equity method of accounting would include the firm's pro rata share ...

The Financial Accounting Standards Board has issued two proposed accounting standards updates with the goal of simplifying employee share-based payment accounting and the equity method of accounting ...