chap005 Analyzing Investing Activities Special Topics(财务报表分析-台湾中兴大学).pptVIP

Analyzing Investing Activities: Special Topics Equity method accounting—reports the parent’s investment in the subsidiary, and the?parent’s share of the subsidiary’s results, as line items in the parent’s financial statements (referred to as one-line consolidation) ? Note: Generally used for investments representing 20 to 50 percent of the voting stock of a company’s equity securities--main difference between consolidation and equity method accounting rests in the level of detail reported in financial statements Equity Method Mechanics Assume that Global Corp. acquires for cash