Benefits and Drawbacks of Equity Method

Parent companies employ equity method of bookkeeping to take into account profit from their other companies into their statement of account.  The parent company should necessarily have at least twenty percent stock and be capable of exerting considerable influence for … Continue reading

Cost Method Vs Equity Method for Accounting of Stock Investments

Different ways like equity, cost and consolidated can be employed when accounting for investments. It’s the amount of ownership that decides the method of accounting.  Here’ how a distinction is made between cost method Vs equity method. When the ownership … Continue reading