EQUITY ACCOUNTING Definition

Bookmark and Share

EQUITY ACCOUNTING is the practice of showing in a companys accounts the share of undistributed profits of another company in which it holds equity ownership (usually below 50%). The share of profit shown is usually equal to its share of the equity in the other company. The profit may not actually be paid over, but the equity holding company has a right to this share of the undistributed profit.

Learn new Accounting Terms

FORWARD, in securities, is an agreement between two parties to exchange specific items, for example, two currencies, at a specified future date and a specified price.

FOOTNOTE is text that appears at the bottom of a page that adds explanation. In finance, it is often used in financial statements to provide explanatory addendums or disclosures as to the detail of various entries in the financial statements, e.g. debt, deferments, and off balance sheet items.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.