How is Equity Method reported on the balance sheet?

[CFACPACFP]

Is an equity method investment simply reported as “Investment in Company X” in the asset section of the balance sheet, or are there other accounts such as “FV of PPE above BV attributed to Company X” or “Goodwill attributed to Company X” reported on the BS, that when combined with the “Investment in Company X” equal the amount of the investment?

 

[S2000magician]

The equity method is “one-line accounting”: one line on the income statement (revenue from affiliate) and one line on the balance sheet (investment in affiliate). That’s it.

 

[CFACPACFP]

Excellent, thank you.

 

[cfa_mixer]

Just to follow up on this question. In the income statement its just the revenue percentage right? Where as in the Balance sheet we do a proportionate revenue and dividend adjustment.
Can someone confirm si’l vous plait?

 

[S2000magician]

cfa_mixer wrote:Just to follow up on this question. In the income statement its just the revenue percentage right? Where as in the Balance sheet we do a proportionate revenue and dividend adjustment.
Can someone confirm si’l vous plait?

D’accord.