Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

20   ASC 323 INVESTMENTS—EQUITY METHOD AND JOINT VENTURES

Perspective and Issues

Topics Related to Investments

ASC 323 Subtopics

ASC 323-10, Overall

Overview

Significant influence

Accounting overview

ASC 323-10, Partnerships, Joint Ventures, and Limited Liability Entities

Scope and Scope Exceptions

Scope—ASC 323-30

ASC 323-740, Income Taxes

Overview

Scope and scope exception

Definitions of Terms

Concepts, Rules, and Examples

The Equity Method of Accounting for Investments

Introduction and background

Significant influence

Recognition and initial measurement

Subsequent accounting

Example of the equity method—a simple case that ignores deferred income taxes

Deferred income tax accounting

Example of the equity method—a simple case that includes deferred income taxes

Example of income tax effects resulting from the sale of an equity method investment

Differences in fiscal year

Goodwill Impairment Testing

Example of a complex case that ignores deferred income taxes—equity method goodwill

Example of adjustment of goodwill for other-than-temporary impairment of an equity method investment—that ignores income taxes

Example of a complex case that ignores deferred income taxes—computation of negative goodwill

Investor share of investee losses in excess of the carrying value of the investment

Example of accounting for excess loss of investee when other investments are also held in same entity, when proportions of all investments are identical

Example of accounting for excess loss of investee ...