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One way to invest in another entity is through an investor’s purchase of equity shares of an investee.  Proper accounting for these equity investments depends on the extent of ownership and influence that the investor has over the investee.  It also depends on whether the equity securities are readily marketable. 

This course provides an overview of properly accounting for equity investments under the cost method, fair value method, equity method, and the consolidation method. 

Learning Objectives

  • Discover the proper classification of equity investments in the financial statements per Accounting Standards Codification (ASC) Topics 320, 321, 323, and 810.
  • Explore the characteristics that determine the method of initial recognition and subsequent measurement of equity investments in another entity.
  • Recognize the impact of recent Accounting Standards Updates (ASUs) to accounting for equity securities.
Last updated/reviewed: November 28, 2019

13 Reviews (63 ratings)Reviews

5
Member's Profile
Overall the course gave a high level overview of the fair value, equity method vs. consolidation rules. Not super in-depth but a good high level overview.
5
Anonymous Author
This provides an excellent highlights surrounding equity investment. It would be helpful if updates of current development are added.
4
Anonymous Author
Good overview of the topic, specifically what has changed in the accounting. The "factors" were a bit confusing.
5
Member's Profile
This course was a good introduction to equity method accounting and new reporting standard implications
5
Member's Profile
Great material. I would love to see a series that provides more in-depth knowledge of these topics.
5
Member's Profile
I enjoyed this presentation related to equity investments, fair value investments.
4
Anonymous Author
Course includes lots of information which sometimes I found hard to keep track of.
4
Anonymous Author
Nice overview of different methods to account for equity investments
4
Anonymous Author
It is a great over view. It goes into the disclosures as well.
4
Anonymous Author
Good overview of the topic. The slides are also very helpful.
4
Member's Profile
detailed and helpful as reminder. good references as tools.
5
Anonymous Author
It was a good high-level overview of investing accounting.
5
Anonymous Author
Great overview of accounting for equity investments

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:25Introduction to the Basics of Accounting for Equity Investments in Entities...
  15:27Factors that Drive Proper Investment Accounting
  8:34Net Asset Value Practical Expedient
  12:46Recent Changes to Accounting For Equity Securities
  3:00When to Apply Equity Method Accounting
  2:38How to Apply Equity Method Accounting
  10:47Equity Method Basis Difference - Overview
  5:56Fair Value - Disclosing Measurement Uncertainty
CONTINUOUS PLAY
  1:00:33The Basics of Accounting for Equity Investments in Entities
SUPPORTING MATERIAL
  PDFSlides: The Basics of Accounting for Equity Investments in Entities
  PDFThe Basics of Accounting for Equity Investments in Entities Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM