Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
The treatment of an associate or joint venture under which the investment starts at cost and is then increased by the investor’s share of the investee’s profit, reduced by its share of losses, and reduced again by dividends received.
One post-tax line of profit and one line of carrying amount. No revenue, no assets, no borrowings and no interest cost from the investee reach your accounts at all.
A joint arrangement, under Ind AS 111, in which the parties sharing joint control have rights to the net assets of a separate vehicle — accounted for by the equity method.
The accounting sense is narrower than the everyday one. It is the classification that puts a whole business, its revenue and its borrowings behind a single line of profit in your accounts.
A company in which there is significant influence but not control.
Included by the equity method — a share of profit rather than line-by-line consolidation.