Hellow guys, Welcome to my website, and you are watching Equity Method vs Fair Value Method | Investments. and this vIdeo is uploaded by Edspira at 2021-11-14T08:00:16-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Equity Method vs Fair Value Method | Investments |
| Video Uploader | Video From Edspira |
| Upload Date | This Video Uploaded At 14-11-2021 16:00:16 |
| Video Discription | The way you account for an investment differs based on whether you use the Fair Value Method or the Equity Method to account for the investment. The Fair Value Method is used when the investor owns less than 20% of the equity of the investee. The Equity Method, on the other hand, is used when the investor has significant influence over the investee. The investor is presumed to have significant influence when it owns 20% to 50% of the investee's equity. Here is how these two methods differ with respect to their effect on the investor's income: With the Fair Value Method, the investor's pretax income will be affected by (1) unrealized gains or losses for its investment and (2) any dividends it receives from its investment. With the Equity Method, the investor's pretax income will be affected by the investor's proportionate share of the investee's net income or net loss. — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com |
| Category | Education |
| Tags | financial accounting | equity method | fair value method | fair value | equity investment | equity method example | unrealized gain | trading securities | equity investments | equity securities | accounting | accounting for investments |
