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 ?
Hence it includes aspects such as purchases, stock, planning, cash, treasury, equity accounting. It should be noted that at the request of MIEM, the program will also develop and include another element of analysis and management: costs.
Calculated under the equity accounting method for Nissan's joint venture in China, the forecasts for the fiscal year ending March 31, 2020, are:
Input sought on complex liabilities, equity accounting guidance.
Constellation expects to account for its investment under the equity accounting method.
MIE uses equity accounting to account for its investment, and does not consolidate SGE.
After completion, Severn Trent and UU will account for the JV, through share of profits of joint ventures, using equity accounting.
In addition, the announced transaction is expected to provide Altria with two seats on the new company's board of directors, continue the use of equity accounting for the beer asset's contribution to Altria's earnings, and maintain a strong asset on the balance sheet.
Private Equity Accounting, Investor Reporting, And Beyond
Etisalat owns 27.46 per cent and consequently accounts for Mobily's results by applying the equity accounting method under the share of results of associates and joint ventures line in the consolidated statement of profit or loss.
"Almarai will now fully consolidate IPNC as opposed to using the equity accounting method and accordingly, this would have some minor impact on our 2014 forecasts.
During the six-month period, the value of Leighton's investment in HLG decreased from $379.4 million to $347.2 million, as a result of equity accounting Leighton's share of HLG's losses for the period of $32.2 million.
The largest declines involved private equity, which reversed a three-year trend of private equity accounting for an increasing proportion of deals.