Definicja equity method (EC-CS)

An accounting technique used for consolidating affiliated enterprises, but also subsidiaries or joint ventures (all of which are refered to as consolidation units) that are not consolidated using the purchase or proportional methods.

Reported financial data of equity-method units is not included in the consolidated financial statements. Therefore, you do not need to enter that data into the Consolidation system.

Only changes in the stockholders' equity of the company are taken into consideration; these affect, in particular, the investment value stated in the consolidated balance sheet.

Therefore, the term "valuation method" also applies here.