Handbook | April 2020

Equity method of accounting

KPMG’s updated guidance on and interpretation of ASC 323, equity method of accounting – with analysis, Q&As and examples.  


ASC Topic 323

  • All companies with equity method investments

Relevant dates

  • Effective immediately

Key impacts

This April 2020 edition incorporates:

  • Additional guidance on ASU 2020-01 on the interactions between ASC 323 (equity method), ASC 321 (equity securities) and ASC 815 (derivatives and hedging)
  • Updated  guidance on ASU 2019-12 on income tax simplification
  • Additional interpretative guidance on accounting for equity method investments on a lag

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

Jon Baker

Jon Baker

Partner, Dept. of Professional Practice, KPMG US

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG US



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