: Simplified the transition to the equity method by eliminating the requirement to retroactively apply the method when an increase in ownership triggers a change from cost-basis accounting. Reporting and Disclosure Requirements Under ASC 323-10-50 , investors must disclose:
ASC Topic 323 provides the framework for how companies must account for investments where they have "significant influence" but not full control. 323 mp4
: Generally, an ownership interest of 20% to 50% of voting stock is presumed to provide significant influence. : Simplified the transition to the equity method
Investments—Equity Method and Joint Ventures (Topic 323) - FASB 323 mp4
The investor recognizes its share of the investee’s earnings or losses in its own income statement.
: Investments are initially recorded at cost. Subsequent Measurement :