Equity Method vs Consolidation: Accounting for a Stake You Don’t Control

Equity method vs consolidation turns on control, not ownership percentage. ASC 810-10-15-8 consolidates a controlling financial interest, ASC 323-10-15-8 presumes significant influence at 20 percent or more of voting stock, and everything below sits in ASC 321. Indinero’s CPA-led team writes a dated influence memo per investee, keeping the classification, the disclosure, and the book-tax difference consistent inside one monthly engagement.