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U.S. GAAP Codification of Accounting Standards |
| U.S. GAAP Codification | Accounting Standards, ASC |
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U.S. GAAP
Codification of Accounting Standards |
| U.S. GAAP Codification Updates |
| Principles of Accounting, Intermediate Accounting, Advanced Accounting |
| Accounting Terms |
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Codification Topic
323 Investments - Equity Method and Joint Ventures Investments in Equity of Other Entities 1. Investments in equity securities that have (A) (A) readily determinable fair value --> Apply asc topic 320: Investments - Debt and Equity Securities --> SFAS 115 2. Investments in common stock of subsidiaries --> Apply asc topic 810: Consolidation --> ARB 51, SFAS 160 3. Investments in common stock with significant influence --> Apply asc topic 323-10: Investments - Equity Method and Joint Ventures --> APB 18 4. Investments in partnerships, unincorporated joint ventures, limited liability companies --> Apply asc topic 323-30: Partnerships, Joint Ventures, Limited Liability Entities --> AICPA Accounting Interpretation (AIN) APB 18 5. Investments in common stock other than previous cases --> Apply asc topic 325-20: Cost Method Investments --> APB 18 6. Fair value option --> ASC 825 Financial Instruments: Fair Value Option (FVO) --> SFAS 159: FVO for financial assets and financial liabilities, ASC 825 --> SFAS 156: FVO for servicing assets and servicing liabilities, ASC 860 --> SFAS 155: FVO for hybrid instruments, ASC 815 --> SFAS 157: Fair Value Measurements, ASC 820 --> SFAS 107: Disclosures about Fair Value of Financial Instruments, ASC 820 Significant Influence --> 20% or more of the voting rights of an investee --> Investee is not a subsidiary or a controlled entity Initial measurement under equity method --> investments are measured at cost Subsequent measurement under equity method 1. Investor's share of (B) --> is recognized in the investor's financial statements (B) Earnings or losses of an investee 2. Investor's share of (C) --> adjusts the investor's other comprehensive income (C) Other comprehensive income 3. Investor's share of (B) and (C) --> adjusts the carrying amount of the investor's investment Equity method losses Investor's share of losses of an investee --> is recognized up to --> the carrying amount of the investor's investment Equity method goodwill: Basis difference 1. If investment cost > investor's share of net assets --> the difference between two --> is recognized as "equity method goodwill" 2. Equity method goodwill is not amortized. 3. Impairment test for goodwill, SFAS 142, --> is not applied to "equity method goodwill" 4. Equity method goodwill is impaired --> if a decrease in value is "other than temporary" Impairment of equity method investment If a decrease in (D) is "other than temporary" --> recognize such a decrease --> beyond the amount normally recognized by equity method, i.e., current losses (D) the value of investor's equity method investment Codification Topic 323-30: Partnerships, Joint Ventures, Limited Liability Entities |
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Codification Topic 323 Investments-Equity Method and Joint Ventures |
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Subtopics of Codification Topic 323 323-10 Overall 323-30 Partnerships, Joint Ventures, and Limited Liability Entities |
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Accounting Terms of Codification Topic 323-10 Common stock Corporate joint venture Dividends Earnings or losses of an investee In-substance common stock Investee Investor Noncontrolling interest Parent Significant influence Standstill agreement Subsidiary |
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Accounting Terms of Codification Topic 323-30 |
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