Equity Method, ASC 323

Equity method for partnerships and joint ventures
AICPA Accounting Interpretations (AIN) APB 18
” The Equity Method of Accounting for Investments in Common Stock:
Accounting Interpretations of APB Opinion No. 18″

FASB Emerging Issues Task Force (EITF) Issue No. 03-16
“Accounting for Investments in Limited Liability Companies”

General rules and principles of equity method, APB 18, apply to
–> Partnerships
–> Unincorporated joint ventures
–> AIN APB 18

Limited Liability Companies (LLC)
–> Investments in LLC are similar to the investments in limited partnership
–> Equity method rules and principles apply to LLC
–> EITF 03-16

 

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