Equity Accounting

Equity Accounting

A method of accounting where a company lists undistributed profits from an affiliated company (or a company in which it holds a substantial, but not controlling, interest) on its balance sheet. This may improve the appearance of the company's financial health, whether or not the undistributed profits are eventually distributed to the company.
References in periodicals archive ?
Private Equity Accounting, Investor Reporting, And Beyond
41% stake in the Rand Refinery and accounts for it using the equity accounting method as an associate.
The largest declines involved private equity, which reversed a three-year trend of private equity accounting for an increasing proportion of deals.
Moving from proportionate consolidation to equity accounting will affect each of a company's financial statement line items, notably decreasing both revenue and gross assets, even though the net amount at the bottom line should be unaffected," Balasubramanian said.
JP Morgan said it has been appointed by IFC Asset Management Company (AMC), a new wholly owned subsidiary of the IFC, a member of the World Bank Group, to provide outsourced private equity accounting and fund administration services.
million under the equity accounting method for ReneSola's investment in
Earnings and ownership of Atwood are reflected on Helmerich & Payne's books using the equity accounting method.
Other matters that are related to equity accounting.
When the equity investment is less than 20 percent, exclusive agreements between the traditional enterprise and the dot-com may trigger equity accounting, since an exclusive distribution agreement can constitute significant influence.
The importance of transfer-pricing approaches, the treatment of intercompany accounts in consolidation and equity accounting and the need to disclose related-party transactions are new ideas, and it'll take some time for them to be understood and consistently applied.
Representative: President Shinichiro Nishino, Headquarter: Shibuya, Tokyo) from an affiliate held under the equity accounting method to a consolidated subsidiary.
We eliminated one equity pass through earlier this year and, starting with our first quarter in fiscal 2003, all equity accounting will be eliminated from our financial statements, making it easier for our shareholders and others to more readily understand our operating results.