NEWS: Chlorpheniramine Naloxone Oxazepam Prednisolone Plendil Insulin. Neomycin Amoxil Furazolidone Thiotepa Dilantin Plendil! Amitriptyline Trandolapril Risperdal Benadryl Naproxen Dulcolax Beclomethasone Morphine Quinidine Aldara Dolasetron Ethanol Acetylcholine Phenacetin! Fenoterol Avalide Diethylpropion Cytomel, Elocon Tolazamide Disopyramide Glimepiride Cycloserine Chlordiazepoxide: Naloxone Cephalothin. Benicar Dextroamphetamine Hexoprenaline Levitra Podofilox Midodrine: Cyproheptadine Isradipine Fenoprofen Cefamandole, Darvocet Granisetron Cefatrizine Estrone Pyridostigmine Butalbital Belladonna Phenylephrine Levlen Trovafloxacin Avodart Warfarin Ethinyl Gemfibrozil. Mephentermine Cefprozil Nylidrin Diphenoxylate Xanax Methantheline Adipex Ibuprofen? Carbachol Dyphylline Chlordiazepoxide Dantrolene? Vytorin Ceftriaxone Phencyclidine Indinavir? Paregoric Demerol Levothyroxine Ceftibuten Iodoquinol Cycrimine Buclizine Mefloquine, Danazol Colace Zoloft Primidone: Viagra Piroxicam Cardizem Cloxacillin Promazine Paromomycin Pilocarpine Butorphanol Pravastatin Toprol Epoprostenol Promazine Digitalis Nizoral Foradil Oxycontin Hydroflumethiazide Enoxaparin Dilaudid Piperidolate Singulair Tretinoin Thiothixene Propylthiouracil Bethanechol Erythrityl Fentanyl Prochlorperazine! Lopressor Dimethindene. Isopropamide Cholestyramine! Demeclocycline Piperacillin Amikacin Prometrium Zileuton Lozol Nitrofurantoin Moxalactam Trimethoprim Sinemet Corticotropin Carbenicillin: Esomeprazole Miconazole Doxepin Hydromorphone Hydromorphone Desyrel! Probucol Echothiophate Ethchlorvynol Hydroxychloroquine! Hydrochlorothiazide Prozac Trimetrexate Somatostatin Adapalene Doxorubicin? Disulfiram Streptomycin Pheniramine Lunesta Ergocalciferol Pargyline Bleomycin Maprotiline Pantothenic Terbinafine Penicillin Acarbose Cerivastatin Amaryl Guanabenz Climara: Mestranol Aminopterin Clotrimazole Chantix Trientine Amantadine Cocaine Heroin Aprotinin Carteolol Mifepristone Oxytetracycline. Naratriptan Xanax: Cosopt Metoprolol, Clomocycline Flagyl Phensuximide Cortisol Botox Acebutolol Ditropan Chlortetracycline Diovan Nialamide! Betamethasone Chlorothiazide Suboxone Ketoprofen Protonix Lotrel! Methamphetamine Dichlorphenamide Perindopril Isocarboxazid: Iodine Prednisone Augmentin Sildenafil! Tacrolimus Tolmetin! Ethinamate Dalteparin Pseudoephedrine Thiabendazole Acarbose Vytorin Norvasc Diethylstilbestrol Nafcillin Acyclovir. Protriptyline Yohimbine Daunorubicin Guaifenesin Sulfasalazine Celiprolol Amoxapine Bricanyl Gatifloxacin Oxybutynin Diethylstilbestrol Demecarium Medrol Concerta Methacycline Vincristine Butorphanol Mucomyst Digoxin Dioxyline Trileptal Methoxsalen Acebutolol Casanthranol: Pediacare Ergocalciferol:

« Income Taxes, and Estimating the Income Tax Rate
What is Minority Interest in Consolidated Subsidiaries? »

What is Equity in Income of Affiliates?

When a company owns part but not all of another company, there are different ways to account for the investment. In the case of a significant ownership, but not enough to justify considering the investee a subsidiary, the company will report a separate line - equity in income of affiliates - representing the proportionate share of the investee’s profits. The revenue, expenses, assets and liabilities of the investee will not appear on the investor’s financial statements.

For more information, see all articles on: Accounting, Financial Statement Analysis, Fundamental Analysis

See also:
  • Adjusting Net Income for Unconsolidated Affiliates
  • The 3-Stage DuPont Model
  • Converting an Indirect Method Statement of Cash Flows to the Direct Method
  • Residual Income
  • Free Cash Flow to the Firm
    • Technical Analysis Explained : The Successful Investor's Guide to Spotting Investment Trends and Turning Points

    The Intelligent Investor: The Classic Text on Value Investing

    Financial Statement Analysis: A Practitioner's Guide, 3rd Edition

    Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)

    This entry was posted on Wednesday, February 21st, 2007 at 1:14 pm and is filed under Accounting, Financial Statement Analysis, Fundamental Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

    2 Responses to “What is Equity in Income of Affiliates?”

    1. Adjusting Net Income for Unconsolidated Affiliates - Financial Education - Everything You Need To Know About Finance Says:

      [...] article on equity income from affiliates described the income statement treatment for investments a company makes that result in it owning a [...]

      February 27th, 2007 at 11:29 am

    2. INTC: Intel and ST Micro Joint Venture - The Devil is in the Details - Stock Market Beat - Our beat: The stock market. Our job: Beat it. Says:

      [...] ownership stake of 45.1% suggests that the new company’s results will be reported using the equity method. This means, essentially, that only the JV’s net income and equity will appear on [...]

      May 22nd, 2007 at 7:59 am

    Leave a Reply

    You must be logged in to post a comment.

    « Income Taxes, and Estimating the Income Tax Rate
    What is Minority Interest in Consolidated Subsidiaries? »
    ss_blog_claim=03ab3ad958d87eac8403bc8f2fe29a6d