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Equity Method of Accounting - Smart Techniques to Manage Investment Assets
Equity Method of Accounting. Smart Techniques to Manage Investment Assets. Equity method of accounting for investment solutions. Posted on October 20, 2014. The equity accounting method is used to report ownership by a company of unconsolidated subsidiaries, where the purchasing company has significant board influence but never total control. The extent of ownership for controlling companies using this method ranges from 20% to 50%. Company X buys 30% of Company Y’s. Investment in affiliate: $500 ↑.
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