The Equity Method Of Accounting For Investments
Three methods are principally used to account for an investment in equity securities along with a fair
A. Fair-value method: applied by an investor when only a smal
CONSOLIDATION OF FINANCIAL INFORMATION
Major changes have occurred for financial reporting for business combinations beginning in 2009. These
changes are documented FASB ASC Topic 805, Business Combinations and Topic 810, Consolidation.
Accounting and financial reporting rules differ across countries. There are a variety of factors influencing a countrys
A. Legal systemprimarily relates to how accounting principles are established; code law countr
I. In the United States, the Securities and Exchange Commission (SEC), created by Act of Congress, is
responsible for ensuring that complete and reliable information concerning publicly traded securities is
available to investors.
Because of a myriad of possible financial or business difficulties, a company may become insolvent, unable to pay its
debts as they come due.
A. To ensure the equitable treatment of all parties involved with an insolvent company (sto