Equity Method vs Fair Value Method | Investments

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  • Опубліковано 4 січ 2025

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  • @vivianafeemster948
    @vivianafeemster948 3 роки тому +15

    I have been struggling with these for some time now. After spending an hour or so watching a few of your videos (some multiple times) it makes much more sense. Thank you for making your videos so easy to understand, I really appreciate them.

    • @Edspira
      @Edspira  3 роки тому

      Glad I could help!

  • @MyFinancialFocus
    @MyFinancialFocus 2 роки тому +1

    Super interesting. So it’s like being a small investor vs being a large shareholder. Cool to see the difference in income recognition.

  • @MichaelOnRockyTop
    @MichaelOnRockyTop 3 місяці тому

    Thank you Mr. McLaughlin for this clear and concise explanation. So much better than my text. You're a life saver. Could you make a video regarding depreciation adjustments under the equity method?

  • @tishaooppapan446
    @tishaooppapan446 2 роки тому +4

    I am so glad to have come across your videos! You make these topics easier to understand, and my eyes appreciate the black backgrounds. Quick question on this video. Should the June 30 journal entry be the $10,000 dividend x 25% ownership? In your Equity Method video, the dividends issued decreased the Investment by the percentage of ownership so I was wondering if that should apply here too.

    • @rossiwuyts87
      @rossiwuyts87 Рік тому

      I don't think so because the 10.000 is the received 10,000 dividend from Chocolate Ham

  • @kalpachamika
    @kalpachamika 2 роки тому +4

    Better than Becker CPA Review explanation

  • @billalrash1484
    @billalrash1484 2 роки тому +3

    U r such an awesome professor !!!!

    • @Edspira
      @Edspira  2 роки тому

      Wow, thank you so much!

  • @nancynancysbb
    @nancynancysbb 4 місяці тому

    Can you make a video on how you arrived at that number for the fair value method. That's what is needed. Thank you.

  • @collegeguy799
    @collegeguy799 3 місяці тому

    How is it that watching your videos for a few minutes is equal to hours of reading the Kieso Accounting textbook? 😂 thanks 🙏

  • @momay4812
    @momay4812 2 роки тому

    thank you sir for the amazing video! really helped me understand what my old professor that about to croak anyday can ever explain.

  • @amedm89
    @amedm89 2 роки тому

    I don’t know what I’d do without you.

  • @JRat1509
    @JRat1509 2 місяці тому

    great video, thank you very much!

  • @user-bo1ef4kk1h
    @user-bo1ef4kk1h 2 місяці тому

    Not sure why some question using the equity method deduct dividends and other questions ignore it (i.e do not deduct the divis)

  • @myhouse-yourhouse
    @myhouse-yourhouse 2 роки тому +1

    There is a mistake. BRK acquired 5% of the company for 400k under the FV method, so if BRK acquired 25% of the company, they'd have spent 2 million. Concept is right, numbers are not.

  • @Nirmanyu95
    @Nirmanyu95 Рік тому

    What is the accounting treatment for the investor's share in investee's earnings/losses under fair value method?

  • @narcotic702
    @narcotic702 Рік тому

    Do you not do a fair value adjustment for the FV method?

  • @chipsmithers4662
    @chipsmithers4662 8 місяців тому

    How do you define ownership percentage? What if one investor owns 33% of the voting, but only 3% of the profits?

  • @ethanstephens7320
    @ethanstephens7320 3 роки тому +1

    Thank you so much for these awesome videos!!

    • @Edspira
      @Edspira  3 роки тому

      Glad you like them!

  • @hazemkamalmaz8772
    @hazemkamalmaz8772 3 роки тому +1

    Thank you for the great exception

    • @Edspira
      @Edspira  3 роки тому

      You are very welcome!

  • @peiyihuang527
    @peiyihuang527 2 роки тому

    Hi professor! Your videos help me a lot, thank you so much! Quick question, under the fair value method, why the debit side is investment but not fair value adjustment when the unrealized gain is recorded?

  • @vkrgfan
    @vkrgfan Рік тому

    Isn't unrealized gain entry should be credited to Fair-Valuation Allowance?

  • @aravinddumpala2583
    @aravinddumpala2583 7 місяців тому

    In the equity method, when you reduce investment by 10k (dividend) and increase the investment by 25k (% of profit), the investment value based on the adjustments is 415k, whereas, it should have been 425k?

  • @iamalemontree
    @iamalemontree 3 роки тому +1

    Thanks so much!

    • @Edspira
      @Edspira  3 роки тому

      You're welcome!