What Is Meant by the Equity Method?
Equity method is a method of accounting for long-term investments by which the investment is first recorded at its acquisition cost. However, the investment account is adjusted to reflect the proportionate increase or decrease in the investee’s net income or loss for the period, and the declaration of dividends.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.