Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337669450
Author: Rich
Publisher: Cengage
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Chapter A2, Problem 11DQ
To determine

Concept introduction:

Equity Method:

The Equity method is applied for the accounting for investment in equity shares of a company where the investment has the significant influence over the company. Under this method the share of income earned by the company is recorded by the investor in the investment account and the investment account is decreased by any divided received.

To discuss:

The difference between the consolidated balance sheet and parent company balance sheet.

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