Section 5
Holding 20-50% of Shares
Book
Version 3
By Boundless
By Boundless
Boundless Accounting
Accounting
by Boundless
3 concepts
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Equity Method
Equity method is the process of treating equity investments (usually 20–50%) of companies. The investor keeps such equities as an asset.
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Assessing Control
An investor has significant influence by holding 20% to 50% of shares, serving on the board, or participating in policy making.
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Reporting Equity Investments
Investments recorded under the equity method usually consist of stock ownership of a company between 20% to 50%.