Instructor for this course

As we all know, many businesses aim to achieve higher profits, increase their market share, expand internationally, diversify business risk, and reduce costs by acquiring a portion of another business's capital.

Those businesses/investors should use the equity method of accounting to measure their share in the investee's capital and operations when their ownership interest grants them a significant influence over the investee's operating and financial policies.

This course discusses the equity method and explains how to distinguish the Equity-method investees from other investments.

This course illustrates the accounting treatment for equity method investees step-by-step, including recognition criteria, subsequent measurement, the proper accounting treatment for the resulting gain/(loss), and dividends.

This course uses practical cases and examples that simplify the theory behind US GAAP standard ASC Topic 323 "Investments – Equity Method and Joint Ventures" and IFRS standard IAS 28 "Investments in Associates and Joint Ventures," highlighting the main differences between them.

Course Key Concepts: Equity Method, Equity-method Investees, Associates, Affiliates, Joint Ventures, ASC 323, IAS 28, Significant Influence, Investments.

Learning Objectives

  • Explore the main differences between Equity-method investees and other types of investments.
  • Discover the proper accounting treatment for equity method investments.
  • Identify how to measure the acquired share of equity-method investee's equity.
  • Recognize the differences between US GAAP and IFRS in applying the equity method of accounting.
Last updated/reviewed: June 20, 2021

1 Review (4 ratings)Reviews

Member's Profile
Good informative course providing valuable information and insights. I like the practice questions and the scenarios; they were helpful in illustrating the learning points.


Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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
  2:48Introduction to Accounting for Equity Method Investments
  8:33Significant Influence
  6:56Assessment of Significant Influence
  9:55Acquisition of an Equity Method Investee
  6:31Measurement After Initial Recognition-Part 1
  7:31Case Study 1
  1:55Measurement After Initial Recognition-Part 2
  7:49Case Study 2
  3:22Intra-entity Transactions
  5:27Changes in Ownership Level
  1:05:43Accounting for Equity Method Investments
  PDFSlides: Accounting for Equity Method Investments
  PDFAccounting for Equity Method Investments Glossary/ Index