This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FASB proposes to simplify equity method accounting

  • FASB document Image

Jun 05, 2015

The FASB has issued a proposed Accounting Standards Update (ASU), “Simplifying the Equity Method of Accounting,” as part of its simplification initiative (i.e., the Board’s effort to reduce the cost and complexity of certain aspects of U.S. GAAP).

The proposed ASU would eliminate an entity’s requirement to separately account for the basis difference of equity method investments. It would also “eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods in which the investment was held.”

Com­ments on the pro­posed ASU are due by August 4, 2015. For more in­for­ma­tion,see Deloitte’s related Heads Up as well as the pro­posed ASU on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.