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