Equity Method of Accounting definition

Equity Method of Accounting means the carrying value of a bank’s investment in a subsidiary is originally recorded at cost but is adjusted periodically to record as income the bank’s proportionate share of the subsidiary’s earnings or losses and decreased by the amount of cash dividends or similar distributions received from the subsidiary. Acquired Subsidiaries with negative equity will be restated to $1 pursuant to the Equity Method of Accounting.
Equity Method of Accounting means, within the meaning of Internal Accounting Standard 28, a method of accounting by which an equity investment is initially recorded at cost and subsequently adjusted to reflect the investor’s share of the net assets of the investee.

Examples of Equity Method of Accounting in a sentence

  • Acquired Subsidiaries with negative equity will be restated to $1 pursuant to the Equity Method of Accounting.

  • This presumption will stand until rebutted by an evaluation of all the facts and circumstances relating to the investment based on the criteria in FASB Interpretation No. 35, Criteria for Applying the Equity Method of Accounting for Investments in Common Stock, an Interpretation of APB Opinion No. 18.

  • Consolidation and Equity Method of Accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or the equity holders as a group do not have a controlling financial interest.

  • On December 26, 2008, the ASBJ issued ASBJ Statement No. 16 (Revised 2008), “Revised Accounting Standard for Equity Method of Accounting for Investments”.

  • Equity Method of Accounting for Investments in Bank and Nonbank Subsidiaries and Associated CompaniesEach holding company in preparing its parent company only financial statements shall account for all investments in subsidiaries, associated companies, and those corpo- rate joint ventures over which the holding company exercises significant influence according to the equity method of accounting, as prescribed by GAAP.

  • Consolidation and Equity Method of Accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or where the equity holders as a group do not have a controlling financial interest.

  • As a result, other expense of $16,498 in fiscal 2002 includes the recognition of losses of $11,485 in excess of what would otherwise have been recognized by application of the equity method in accordance with Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in Common Stock”.

  • Equity Method of Accounting for Investments in Bank and Nonbank Subsidiaries and Associated CompaniesEach bank holding company in preparing its parent com- pany only financial statements shall account for all investments in subsidiaries, associated companies, and those corporate joint ventures over which the bank hold- ing company exercises significant influence according to the equity method of accounting, as prescribed by GAAP.

  • EITF Issue No. 02-14, "Whether the Equity Method of Accounting Applies When an Investor Does Not Have an Investment in Voting Stock of an Investee but Exercises Significant Influence through Other Means," is a scope issue related to Opinion 18.

  • The Common Shares are accounted for pursuant to APB No. 18, "The Equity Method of Accounting for Investments in Common Stock".


More Definitions of Equity Method of Accounting

Equity Method of Accounting means the carrying value of a bank’s investment in a subsidiary is originally recorded at cost but is adjusted periodically to record as income the bank’s proportionate share of the subsidiary’s earnings or losses and decreased by the amount of cash dividends or similar distributions received from the subsidiary. Acquired Subsidiaries with negative equity will be restated to $1 pursuant to the Equity Method of Accounting. “ERISA” has the meaning set forth in Section 4.12. “Failed Bank” has the meaning set forth in Recital A. “Failed Bank Advances” means the total sums paid by the Failed Bank to (i) protect its lien position, (ii) pay ad valorem taxes and hazard insurance and (iii) pay premiums for credit life insurance, accident and health insurance and vendor’s single interest insurance. “Failed Bank Assessment Area” means the most recent Community Reinvestment Act (“CRA”) assessment area of the Failed Bank reflected in the Information Package. “Failed Bank Records” means records as defined in 12 C.F.R. § 360.11(a)(3). “Fair Market Value” means: (a) “Market Value” as defined in the regulation prescribing the standards for real estate appraisals used in federally related transactions, 12 C.F.R. § 323.2(g), and accordingly shall mean the most probable price which a property should bring in a competitive and open
Equity Method of Accounting means a method of accounting re- lating to the investment by a body in another body carried out in ac- cordance with generally accepted accounting practice”.(5) Regulation 2(1) of the principal regulations is amended by re- voking the definition of the term equity security, and substi- tuting the following definition:

Related to Equity Method of Accounting

  • Investment Option means any of the guaranteed investments and variable investment funds available under the Plan.

  • Alternative method means any method of sampling and analyzing for an air pollutant that is not a reference or equivalent method but that has been demonstrated to the satisfaction of the commissioner and the U.S. EPA to, in specific cases, produce results adequate for a determination of compliance.

  • Adoption Agreement Means the document executed by the IRA Owner through which the individual adopts this Agreement and thereby agrees to be bound by all terms and conditions of this Agreement.

  • Investment Funds means all monies and financial resources available for investment by the Authority, other than proceeds of bonds issued by the Authority.