Instructor for this course
more

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: April 16, 2018

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