Equity Accounting
Equity accounting records an investor's share of an investee's profit or loss when the investor has influence but does not control the entity.
Accounting terms for fair value, historical cost, mark-to-market, equity method, and hedge accounting.
Measurement, Valuation, and Investment Accounting covers fair value, historical cost, mark-to-market, equity method, and hedge accounting.
Use these pages when an accounting method or principle changes how transactions are recognized, measured, compared, or interpreted in finance work. It sits inside Accounting Principles and Methods, so readers can move up when the broader accounting context matters.
Use the table below to choose the narrower accounting branch before applying a term to a statement line, model input, audit trail, tax schedule, covenant test, or management report.
| Area | Use it for |
|---|---|
| Equity Accounting | Equity accounting records an investor’s share of an investee’s profit or loss when the investor has influence but does not control the entity. |
| Equity Method of Accounting | Investment-accounting method that records the investor share of investee earnings and adjusts the investment carrying amount. |
| Fair Value Accounting | Measurement approach that reports assets or liabilities at current market-based or model-based values rather than historical cost alone. |
| Hedge Accounting | Accounting treatment that aligns hedging instruments with hedged items to reduce artificial income-statement volatility. |
| Historical-Cost Accounting | Accounting measurement basis that records assets and transactions at original cost rather than current market value. |
| Mark-to-Market Accounting | Fair-value approach that updates carrying amounts to current market prices or observable valuation inputs. |
Accounting-principles content is educational and does not provide accounting, tax, audit, legal, investment, or valuation advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Equity accounting records an investor's share of an investee's profit or loss when the investor has influence but does not control the entity.
Equity Method of Accounting is an accounting method used to measure transactions, allocate costs, and support comparable reporting.
Fair Value Accounting is an accounting method used to measure transactions, allocate costs, and support comparable reporting.
Accounting treatment that aligns hedging instruments with hedged items to reduce artificial income-statement volatility.
Accounting measurement basis that records assets and transactions at original cost rather than current market value.
Mark-to-Market Accounting is an accounting method used to measure transactions, allocate costs, and support comparable reporting.