Handbook  |  July 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

  • Explains when investments are in the scope of ASC 323.
  • Describes the basics of applying the equity method. 
  • Includes FASB projects that could affect the equity method, if approved.

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, Department of Professional Development, KPMG US

+1 212-954-5919



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