Handbook | October 2019

Equity method of accounting

KPMG explains the equity method of accounting, ASC 323, in detail. We provide guidance and interpretations, including Q&As and examples. 


ASC Topic 323

  • All companies with equity method investments

Relevant dates

  • Effective immediately

Key impacts

This October 2019 edition incorporates:

  • New interpretive guidance on tax credit structures
  • Expanded guidance on transitioning from the equity method to consolidation when the investee is not a business
  • Revised guidance on the forthcoming ASU on income tax simplification
  • Additional guidance on, and illustration of, the recently proposed ASU on the interaction of Topic 323 (equity method) with Topic 321 (equity securities). 

Report contents

  • Scope
  • Initial recognition and measurement
  • Recognizing investee activity
  • Recognizing investor-level adjustments
  • Changes in ownership and degree of influence
  • Presentation and disclosure     

Spotlight on contributors

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG (US)

+1 212-909-5488
Brian Stewart

Brian Stewart

Senior Manager, DPP, KPMG (US)

+1 212-872-6788
Brent Hansen

Brent Hansen

Partner, Audit, KPMG US

+1 212-954-3513
Shoshana Feldman

Shoshana Feldman

Director, DPP, KPMG US

+1 212-954-5919



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