If your company invests in another firm, whether it's to form a business alliance or just to make a profit, that investment must be accounted for on your balance sheet. Accounting rules dictate the ...

Companies frequently buy the stock of other companies. Sometimes it's just an investment; other times it reflects the desire to exert influence over the investee. The dividing line between the two ...

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 ...

The Financial Accounting Standards Board has issued a standards update aimed at clarifying the interaction between the rules related to equity securities, equity method investments and certain ...

The International Accounting Standards Board has begun a public consultation on proposed amendments to International Financial Reporting Standards to help companies account for their investments in ...

The question of accounting for investments in marketable equity securities has been simmering in the accounting community for over a decade. Resolution of the issue will particularly affect the ...

Learn how to use the High-Low Method to separate fixed and variable costs efficiently. Discover its applications, limitations, and how to calculate costs.

Learn how the lower of cost or market (LCM) method helps value inventory accurately by using the lesser of historical cost or market value, key for GAAP compliance.