Equity Method vs Fair Value Method | Investments

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  • เผยแพร่เมื่อ 22 พ.ย. 2024

ความคิดเห็น • 29

  • @vivianafeemster948
    @vivianafeemster948 2 ปีที่แล้ว +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  2 ปีที่แล้ว

      Glad I could help!

  • @MichaelOnRockyTop
    @MichaelOnRockyTop 2 หลายเดือนก่อน

    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?

  • @MyFinancialFocus
    @MyFinancialFocus 2 ปีที่แล้ว +1

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

  • @kalpachamika
    @kalpachamika 2 ปีที่แล้ว +4

    Better than Becker CPA Review explanation

    • @Edspira
      @Edspira  2 ปีที่แล้ว +1

      Thank you!

  • @nancynancysbb
    @nancynancysbb 2 หลายเดือนก่อน

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

  • @tishaooppapan446
    @tishaooppapan446 2 ปีที่แล้ว +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 ปีที่แล้ว

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

  • @Nirmanyu95
    @Nirmanyu95 ปีที่แล้ว

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

  • @narcotic702
    @narcotic702 ปีที่แล้ว

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

  • @chipsmithers4662
    @chipsmithers4662 7 หลายเดือนก่อน

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

  • @amedm89
    @amedm89 2 ปีที่แล้ว

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

  • @billalrash1484
    @billalrash1484 2 ปีที่แล้ว +3

    U r such an awesome professor !!!!

    • @Edspira
      @Edspira  2 ปีที่แล้ว

      Wow, thank you so much!

  • @vkrgfan
    @vkrgfan ปีที่แล้ว

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

  • @momay4812
    @momay4812 2 ปีที่แล้ว

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

  • @peiyihuang527
    @peiyihuang527 2 ปีที่แล้ว

    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?

  • @aravinddumpala2583
    @aravinddumpala2583 6 หลายเดือนก่อน

    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?

  • @JRat1509
    @JRat1509 หลายเดือนก่อน

    great video, thank you very much!

  • @myhouse-yourhouse
    @myhouse-yourhouse 2 ปีที่แล้ว +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.

  • @hazemkamalmaz8772
    @hazemkamalmaz8772 3 ปีที่แล้ว +1

    Thank you for the great exception

    • @Edspira
      @Edspira  3 ปีที่แล้ว

      You are very welcome!

  • @collegeguy799
    @collegeguy799 หลายเดือนก่อน

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

  • @ethanstephens7320
    @ethanstephens7320 3 ปีที่แล้ว +1

    Thank you so much for these awesome videos!!

    • @Edspira
      @Edspira  3 ปีที่แล้ว

      Glad you like them!

  • @user-bo1ef4kk1h
    @user-bo1ef4kk1h 27 วันที่ผ่านมา

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

  • @iamalemontree
    @iamalemontree 3 ปีที่แล้ว +1

    Thanks so much!

    • @Edspira
      @Edspira  3 ปีที่แล้ว

      You're welcome!