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