Commercial & Finance

EQUITY ACCOUNTING

Definition

Equity Accounting

equity accounting means equity accounting. A method of accounting by which an equity investment (i.e. shares in another company) is initially recorded at cost and thereafter adjusted to reflect the investor's share of…

A method of accounting by which an equity investment (i.e. shares in another company) is initially recorded at cost and thereafter adjusted to reflect the investor's share of the net profit or loss of the investee.<p> <p> (For the accountants amongst us, refer to IAS28 or IFRS3)

✓ Verified term