Businesses purchase ownership stakes in other companies to achieve objectives they cannot achieve alone. The ownership percentage and that ownership's character determine how the business accounts for ...

FASB’s efforts to simplify accounting continued Tuesday, when the board issued a standard eliminating the requirement to retroactively adopt the equity method of accounting when an investment ...

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 ...

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 ...

FASB took steps to simplify accounting in two areas last week when it voted to direct the board’s staff to prepare a pair of proposed Accounting Standards Updates. Upon written approval by FASB, the ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Alibaba shares fell 6.7% in Wednesday's trading, a black mark in an otherwise buoyant market. Alibaba on Wednesday filed its 20-F, the annual financial report required for U.S.-listed foreign ...