Equity Method of Accounting for Investments

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  • Опубликовано: 13 дек 2024

Комментарии • 74

  • @Nott_Fifi
    @Nott_Fifi Год назад +8

    when I was in university, I watched Michael's videos. Now I am on my CPA path and I come back without any hesitation. Thank you Michael!!!!

  • @Coriolanus359
    @Coriolanus359 9 месяцев назад +1

    These are by far the best accounting/finance videos on RUclips. They take all the dryness out of the subject, it's likes you're out with a friend having drinks and they are explaining it to you on a cocktail napkin.

  • @binyan7282
    @binyan7282 6 лет назад +51

    Michael's videos are the most helpful accounting videos I had ever seen, Thank you for your years' devotion!

    • @Edspira
      @Edspira  6 лет назад +3

      Happy to help!

  • @johnobtech
    @johnobtech 4 года назад +10

    my man "Money Mike" explaining this better in 6 minutes than any other professor's 3 hours lecture.

    • @Edspira
      @Edspira  4 года назад +2

      Thank you my friend!

    • @zhaoshouqi
      @zhaoshouqi 4 года назад +1

      So true.

  • @kerryfarrell8147
    @kerryfarrell8147 7 лет назад +16

    reading the text makes it sound so overwhelming but these videos truly help to clarify and make it more usable information, thanks!

    • @Edspira
      @Edspira  7 лет назад +3

      No problem! There is nothing more dry than reading an accounting textbook...

  • @charissed6746
    @charissed6746 5 лет назад +7

    Saved hours of textbook reading by watching your video... thanks a million! With the basic understanding it will be much easier to understand the deeper concepts when reading additional study materials. Your channel is truly amazing!

  • @jordanmott8165
    @jordanmott8165 7 лет назад +2

    My god you are a life saver! honestly the best accounting tutor on RUclips!!!

  • @GeniusAjinkya
    @GeniusAjinkya 6 месяцев назад +2

    Gosh, this helped me so much

  • @mariag1926
    @mariag1926 4 года назад +2

    I'm studying for FAR right now. This is another great refresher!!!

    • @Edspira
      @Edspira  4 года назад +1

      I hope you ace the exam!

  • @fullsendgolfsimulators
    @fullsendgolfsimulators Год назад +2

    Protect this man at all cost

    • @Edspira
      @Edspira  Год назад +1

      Thank you for bringing a smile to my face!

  • @enriquebn4853
    @enriquebn4853 4 года назад +1

    Day 2 of Accounting II. Your videos are gold. Thank you so much for these videos!

  • @ritikasalian8773
    @ritikasalian8773 3 года назад +3

    Thanks a lot sir...... your Videos are of great help....I am studying FAR right now, i always keep juggling between my own lecture videos and your videos....since your explanation is always simple and easy to understand

  • @marylynkoinakimisack2057
    @marylynkoinakimisack2057 4 года назад +1

    Thanks professor farhat for your help with your tutorials.

  • @lazarlogantheboi4590
    @lazarlogantheboi4590 7 лет назад +7

    You are the best! LOVE your videos!!! Thank you so much!

    • @Edspira
      @Edspira  7 лет назад +2

      Thank you for the kind words, you are awesome!

  • @Alexis96650
    @Alexis96650 5 лет назад +3

    i like your videos but i wished it covered a little deeper. For instance, under the equity method, we should also account for asset differences adjustment and goodwill if applicable. Also, examiners trick people in areas where the investor initially owned less than 20% and later that year, the investor purchased more common stocks to bring his position to more than 20%.
    Also an investor can own less than 20% in an an investee and still use equity method if such investor shows signs of exercising significant influence. Also you could clarify that in determining significant influence, preferred stocks are not used, common stocks only.

  • @MyFinancialFocus
    @MyFinancialFocus 2 года назад +1

    Love this channel! Thanks for the info

  • @lilong5202
    @lilong5202 5 лет назад +1

    You saved my life. Thank you

  • @rob8482
    @rob8482 7 лет назад

    Always easy to follow, and the questions are always anticipated...well done!

  • @bigb6475
    @bigb6475 3 года назад

    Thank you Michael.
    Great videos!

  • @keithibarra3835
    @keithibarra3835 7 лет назад

    thank u for explaining it shortly and precisely!

  • @joshmodika1502
    @joshmodika1502 7 лет назад +2

    Thank you! {Pretoria, South Africa}

  • @nigelsapalit43
    @nigelsapalit43 2 года назад

    Excellent explanation.. Love it..

  • @khotsoapele3880
    @khotsoapele3880 9 лет назад +4

    This was very helpful. I now understand how to apply the equity method when accounting for investment in associates. *chuckles* Thank you . :)

  • @nrjadeja
    @nrjadeja 7 лет назад +1

    Your videos are a HUGEEEEEEEEE help...You know how to explain and how to make it easy for others to understand...pls post videos for spin-off, split-off. Thank you.

  • @safwanhaq6751
    @safwanhaq6751 4 года назад

    It really helped me to understand the concept. Thank You!

  • @3650days
    @3650days 9 лет назад +3

    Very helpful. Thank you!

    • @Edspira
      @Edspira  9 лет назад +1

      +3650days No problem. Have a nice winter break!

  • @maximasforrester8689
    @maximasforrester8689 2 года назад

    This helped thanks so much

  • @ontopp247
    @ontopp247 4 года назад +1

    helpful and quick. thanks!

    • @Edspira
      @Edspira  4 года назад

      You're welcome!

  • @Carol_-tv6jv
    @Carol_-tv6jv 7 лет назад

    Your videos are SO helpful, thanks!

    • @Edspira
      @Edspira  7 лет назад

      Awesome! Thanks for watching :)

  • @blackm9063
    @blackm9063 2 года назад

    Thanks for the video

  • @rachelhartter
    @rachelhartter 7 лет назад +1

    thank you for making these videos! you're a huge help!!

    • @Edspira
      @Edspira  7 лет назад

      No problem. Thanks for watching!

  • @maxohara1967
    @maxohara1967 8 лет назад +3

    Any possibility of creating some videos showing other consolidation methods like for example investments in companies with a share over 50% or buying a complete company? Thanks ever so much.

    • @Edspira
      @Edspira  8 лет назад

      I don't currently have any videos for these topics, but I plan to make videos on these topics in the next couple of months. Thanks so much for watching!

  • @davida99
    @davida99 Год назад +1

    Amazing!!

  • @michielpro
    @michielpro 2 года назад

    Thanks bro!

  • @angelynewa2143
    @angelynewa2143 3 года назад

    May I ask accounting question regarding investment? when should I recognise investment in associates and subsidiaries? At the time of acquisition? Or issuance of share certificates? Or otherwise?

  • @mariamulleruhrskovpedersen3480
    @mariamulleruhrskovpedersen3480 6 лет назад +1

    Great video!

  • @bhavikupadhyaya972
    @bhavikupadhyaya972 2 года назад +1

    God bless you

  • @caitlynbowman6897
    @caitlynbowman6897 7 лет назад

    This is great! Thank you!

  • @mariag1926
    @mariag1926 5 лет назад

    Is there a video for consolidation method for investments ?

  • @lala2534
    @lala2534 7 лет назад +1

    Thank you!

    • @Edspira
      @Edspira  7 лет назад

      Happy to help!

  • @ryanmiguelsalinas2495
    @ryanmiguelsalinas2495 5 лет назад +1

    Good day sir! When you received a dividend, why does it decreases your investment??

    • @sashith4131
      @sashith4131 4 года назад

      because the dividend payment decreases the retained earnings

  • @Izmar_amranumigarovich
    @Izmar_amranumigarovich Год назад

    Sir i want to ask if we buy stock with equity method whether we must write the agio ( share premium ) or not or just buying price? Please answer i don't find a lot of sources of my question.

  • @liaoziqi2460
    @liaoziqi2460 7 лет назад +1

    not sure if this is because of the change of text book, but my text book says different from your video: if the company reports a net income, you dr. equity in affiliate earnings instead of investment revenue. (not sure if I am correct about this either, just a concern)

    • @Edspira
      @Edspira  7 лет назад +2

      When recording net income in the video, I debited Investment in Tom's Surf Shop and credited Investment Revenue. Investment in Tom's Surf Shop is an equity account. Thus, "equity in affiliate earnings" is another way of stating "Investment in affiliate", or Tom's Surf Shop in this instance. Great question!

  • @luosen856
    @luosen856 7 лет назад

    thank you

  • @samuelkwon5824
    @samuelkwon5824 7 лет назад

    Thanks for this video! New to all this. Why are we getting a portion of this dividend being paid out to $10,000? What if that dividend was going to someone else? Does the 40% give us a claim to all dividends?

  • @furqaanmustafa3871
    @furqaanmustafa3871 8 лет назад

    hi Michael, i saw your trading securities and available for sale ones. but any videos for Held to Maturity? just trying to understand how that works.

    • @Edspira
      @Edspira  8 лет назад

      Yes. Below are links to the videos. Thanks for watching!
      Amortize a Bond Discount: ruclips.net/video/O2W935hzYpQ/видео.html
      Amortize a Bond Premium: ruclips.net/video/meaqidbXHRY/видео.html

  • @DG-ty2xy
    @DG-ty2xy 8 лет назад +1

    i cannot speak a very good english but i still understood it! thanks

  • @Andrew6James
    @Andrew6James 4 года назад

    Is 'Investment Revenue' a IS line item?

  • @rj-conceptclarityclasses236
    @rj-conceptclarityclasses236 3 года назад

    One suggestion that kindly enhance bold your handwriting....
    Other things are good, nicely explain 👍

  • @zackd7597
    @zackd7597 3 года назад

    What happens if there is goodwill?

  • @omario8822
    @omario8822 7 лет назад

    Why did you minus 4000? I thought that 4000 belonged to the Investor so therefore it would add 4000

  • @danialmoese1300
    @danialmoese1300 6 лет назад +1

    thank you

  • @fahedalyafiy6215
    @fahedalyafiy6215 11 месяцев назад

    Thank you