The topic for this column is the equity method, which we subjected to blistering criticism a few years ago for its abject failure to produce results that help statement users project future cash flows ...

The French carmaker, which owns 35.71% of Nissan, said the financial hit from the change has no impact on its cash position nor on the calculation of its dividend.

Under the equity method, the initial investment is recorded at cost. Afterward, that value gets adjusted periodically to reflect fluctuations in the investment's income and losses.

The equity method has a larger potential effect on income and thus on income taxes. Suppose XYZ Corp routinely earns a 10 percent annual return on equity.

If the investee’s capital structure gives different rights and priorities to its owners, the income statement approach has been difficult to apply in practice. The approach in the proposed SOP is ...

Renault Group (OTCPK:RNSDF) on Tuesday said it would record a €9.5 billion ($11.2 billion) non-cash loss in the first half of the year due to changes in how it accounts for its stake in Nissan ...

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

The cash distributions for those equity method investments where we apply HLBV are segregated into a return on and return of capital on our cash flow statement based on the cumulative income (loss ...

The cash distributions for those equity method investments where we apply HLBV are segregated into a return on and return of capital on our cash flow statement based on the cumulative income (loss ...

FASB issued an exposure draft Monday proposing to improve the standards for stock compensation and employee share-based accounting. The areas for simplification involve several aspects of the ...

The equity method of investment accounting In general, when you own 20% or more of all a company's stock the equity method is the appropriate accounting choice.