Equity accounting is a method of reporting a company's profits from the operations of an affiliated company that it has an interest in but does not own outright.

Dividends are those delightful distributions of cash you receive from your shares of stock and mutual funds. Corporations also can receive dividends by owning dividend-paying stock of other ...

The cost and equity methods of accounting are used by companies to account for investments they make in other companies. In general, the cost method is used when the investment doesn't result in a ...

Businesses purchase ownership stakes in other companies to achieve objectives they cannot achieve alone. The ownership percentage and that ownership's character determine how the business accounts for ...

The more we consider what the Financial Accounting Standards Board accomplished with SFAS 159, the more we're warming up to the sea change it represents. This standard, titled "The Fair Value Option ...

For most investors, the proper way to account for your investing profits and losses is with the cost method of accounting. This method is not the only choice, however. For investments where the ...

After graduating with a finance degree, Taylor Jensen started her career as a broker at a major financial services company. Although she loved interacting with clients, she craved more autonomy and ...

Discover how the equity multiplier measures asset financing through stock versus debt, and what it means for company leverage ...