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Chapter 3 — Applying the Equity Method of Accounting

3.1 Overview

3.1 Overview

ASC 323-10
25-2 An investor shall recognize an investment in the stock of an investee as an asset. The equity method is not a valid substitute for consolidation. The limitations under which a majority-owned subsidiary shall not be consolidated (see paragraphs 810-10-15-8 through 15-10) shall also be applied as limitations to the use of the equity method.