D.1 Summary of Accounting for a Limited Liability Tax Equity Investment
The decision tree below illustrates how an investor should determine what method to
use to account for a limited liability tax equity investment. Depending on the
specific facts and circumstances, an investor may account for the investment in one
of the following ways:
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Consolidate the tax equity investee in accordance with ASC 810.
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Account for the investment under the equity method of accounting in accordance with ASC 323.
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Use the proportional amortization method under ASC 323-740.
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Account for the investment at fair value or by applying the measurement alternative, if applicable, in accordance with ASC 321.