Preface
We are pleased to present the 2024 edition of Equity Method
Investments and Joint Ventures. This Roadmap provides Deloitte’s insights
into and interpretations of the guidance on these topics.1
The accounting principles related to equity method investments have
been in place for many years, but they can be difficult to apply. In addition,
diversity in practice has resulted from a lack of prescriptive guidance on the
accounting for equity method basis differences and the calculation of an investor’s
share of earnings or losses of an investee, particularly in complex capital
structures. This Roadmap is intended to help entities navigate these challenges.
While Chapter 6 of this
Roadmap covers the presentation and disclosure requirements for equity method
investments for SEC registrants, readers who wish to explore this topic in depth may
consult Deloitte’s Roadmap SEC
Reporting Considerations for Equity Method Investees.
Be sure to check out On the Radar (also available
as a stand-alone
publication), which briefly summarizes
emerging issues and trends related to the accounting and
financial reporting topics addressed in the Roadmap.
We hope that you find this Roadmap a valuable resource, and we
welcome your suggestions for future
improvements. If you need assistance with applying the guidance or have other
questions about this topic, we encourage you to consult our technical specialists
and other professional advisers.
Footnotes
1
For key changes made to the Roadmap since publication of the 2023 edition,
see Appendix G.