Businesses purchase ownership stakes in other companies to achieve objectives they cannot achieve alone. The ownership percentage and that ownership's character determine how the business accounts for ...

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 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 ...

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 ...

Understand what the cost of equity means, along with how to calculate it using CAPM or dividend models, and why it's crucial ...

FASB proposed a standard Tuesday that would clarify the interaction between its standard on recognition and measurement of financial instruments and its standard on equity method investments. In 2016, ...

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 ...