Accounting Research Tool
Roadmap Series

Equity Method Investments and Joint Ventures

Image cannot be displayed

Equity Method Investments and Joint Ventures (December 2023)

  • Read the Roadmap.
  • Open a PDF version of the Roadmap.
  • A DART subscription is required for downloading, copying, or printing the Roadmap. Clients who are not DART subscribers may request a PDF version of the Roadmap from their engagement teams.
This Roadmap provides Deloitte’s insights into and interpretations of the guidance on accounting for equity method investments and joint ventures. The 2023 edition includes a new Chapter 9 — which discusses a joint venture’s accounting after adopting ASU 2023-05 — as well as new Appendixes C and D — which summarize and provide comprehensive examples of the accounting for certain limited liability equity investments before and after, respectively, the adoption of ASU 2023-02 (the proportional amortization method).
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.
It is assumed in the Roadmap that entities have adopted the guidance in certain FASB Accounting Standards Updates (ASUs) that affect the accounting for equity method investments. These include, but are not limited to, ASU 2018-07, ASU 2017-05, ASU 2016-01, and ASU 2014-09.
While Chapter 6 in this publication 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.
Also available is the latest edition of On the Radar, a high-level summary of emerging issues and trends related to the accounting and financial reporting topics addressed in the Roadmap.
Be sure to check out other titles in Deloitte’s Roadmap series, our comprehensive, easy-to-understand collection of accounting guides on selected topics of broad interest to the financial reporting community.