equity method |
|
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.
email to a friend
print this definition
cite this definition
link to this page
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
This content can be found on the following page:
http://www.businessdictionary.com/definition/equity-method.html