At Equity

The At Equity consolidation method applies when an investor does not control an investee, but instead significantly influences the investee's operating and financial policies. In the At Equity method, an investor should record each acquisition of an investment at cost.

Note: The way in which investors record acquisitions of investments is GAAP-specific.

At each reporting period, an investor adjusts the carrying value of an investment to reflect, for example, the proportionate share of an investee's income (debit to an investment account) or loss (credit to an investment account) in equity in earnings (statement of comprehensive income).

The At Equity consolidation process applies to entities for which the At Equity consolidation method is set. Groups must define those entities if they have a significant but not controlling influence over those entities.

Unlike entities that are fully consolidated, entities with the At Equity consolidation method are not shown with their assets, equity, and liabilities in the group financial statements, but are only recognized within the participation of the parent. The participation account of the parent is a mirror of the financial success of a subsidiary.