When one company has an interest in another company it has equity in that company. Under certain circumstances, the appropriate way for the company to account for that investment on its own books is ...

Private equity fund accounting is quite complex to other investment vehicles. What separates fund accounting from general accounting is that, while small businesses, for example, make purchases with ...

The cost and equity methods of accounting are used by companies to account for investments they make in other companies. In general, the cost method is used when the investment doesn't result in a ...

There is no easy way to start this topic other than to hit it hard from the gate: Internal succession strategies for every firm have been broken due to outside investment. The infusion of private ...

Phil Whitman of Whitman Business Advisors offers a primer on what the entry of PE money into the accounting profession means for firms. Welcome to On the Air with Accounting Today. I'm editor in chief ...

A corporation initially books the investment in another company's shares as a noncurrent asset with a value equal to the purchase cost. Whenever the investee issues an earnings report, the investor ...

Learn how a general ledger supports double-entry accounting, compiling vital transaction data for accurate financial ...

The accounting treatment of price return swaps (PRS) has become a hot potato in the capital market as large corporations have successively raised funds ranging from hundreds of billions of won to ...

Simply put, equity describes an investor's direct ownership interest in an asset, excluding all other claims. A familiar example is home equity, which is the value of your home after you subtract ...