equity method |
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Definition
Method of accounting used by a parent firm for monies invested in the subsidiaries. The parent firm records the investment in its balance sheet at a valuation that takes into account the profits and losses of the subsidiaries since their acquisition. Also called equity accounting. See also cost method.
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equity method is in the Accounting & Auditing, Banking, Commerce & Finance and Securities & Futures Trading subjects.
equity method appears in the definition of the following term: equity accounting
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