Definicja book value method (EC-CS)

Co znaczy BOOK VALUE METHOD (EC-CS):

A variant of consolidation of investments.

The purchase method and proportional consolidation have two variants:

Book value method Revaluation method

When the book value method is used in the proportional or purchase methods of consolidation, the method records and clears fair value adjustments (hidden reserves) only up to the value that pertains to the corporate group.

The equity method has the following two variants:

One-line consolidation (also called book value method) Two-line consolidation (also called proportion of equity method)

When the one-line variant is used in the equity method, the investment item of the immediate upper unit remains unchanged during first consolidation, and the differential is typically stated in the notes to the financial statements.