If your company invests in another firm, whether it's to form a business alliance or just to make a profit, that investment must be accounted for on your balance sheet. Accounting rules dictate the ...

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 ...

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 ...

A corporation initially books the investment in another company's shares as a noncurrent asset with a value equal to the purchase cost. Whenever the investee issues an earnings report, the investor ...

The Financial Accounting Standards Board has issued a standards update aimed at clarifying the interaction between the rules related to equity securities, equity method investments and certain ...

FASB proposed a standard Tuesday that would clarify the interaction between its standard on recognition and measurement of financial instruments and its standard on equity method investments. In 2016, ...

Private equity fund accounting is quite complex to other investment vehicles. What separates fund accounting from general accounting is that, while small businesses, for example, make purchases with ...

FASB has issued guidance that enables companies to write off lingering gift card liabilities, shore up hedge accounting practice differences, and simplify transitions to equity method accounting.