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 ...

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 ...

FASB’s efforts to simplify accounting continued Tuesday, when the board issued a standard eliminating the requirement to retroactively adopt the equity method of accounting when an investment ...

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 International Accounting Standards Board has begun a public consultation on proposed amendments to International Financial Reporting Standards to help companies account for their investments in ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.