Definicja change of method

A change of the consolidation method used for a company from one statement closing to the next.

The need for changing the method often arises when a company buys or sells shares of another company.

Typically, a change occurs from the equity method or proportional consolidation method to the purchase method, or vice versa. There can be changes from the valuation at cost of the investment to either the equity method or purchase method, or vice versa.