Deloitte
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Chapter 1 — Presentation of Separate Financial Statements and Summarized Financial Information

1.7 Equity Method Investments Eligible for Fair Value Option (ASC 825-10-15-4)

1.7 Equity Method Investments Eligible for Fair Value Option (ASC 825-10-15-4)

A registrant may elect the fair value option for recognized financial assets. Equity method investments eligible for the equity method of accounting under ASC 323 are included in such financial assets because they represent an ownership interest. If an investor elects the fair value option, it must record its investment at fair value in each reporting period, with subsequent changes in fair value reported in earnings. As discussed in Section 3.1.3.6, Rules 3-09, 4-08(g), and 10-01(b)(1) do apply to equity method investments accounted for under ASC 323 for which the fair value option has been elected.