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Home > Terms > English, UK (UE) > Equity method
Equity method
A method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor’s share of net assets of the investee. The profit or loss of the investor includes the investor’s share of the profit or loss of the investee.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Accountancy
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