Companies frequently buy the stock of other companies. Sometimes it's just an investment; other times it reflects the desire to exert influence over the investee. The dividing line between the two ...
When one company has an interest in another company it has equity in that company. Under certain circumstances, the appropriate way for the company to account for that investment on its own books is ...
The cost and equity methods of accounting are used by companies to account for investments they make in other companies. In general, the cost method is used when the investment doesn't result in a ...