This scenario describes the Equity Method (EMA) of accounting for a buy, or acquisition, of a Joint Venture (JVLCLP) security .When when you use the Equity Method (EMA) accounting method. When you use the equity method of accounting for a position, you can hold positions that use the Equity Method (EMA) of accounting method as well as positions that use the STAR accounting method of accounting. These scenarios describe the Equity Method (EMA) of accounting. .
For this scenario the Entity (EMAENT) has two bases:
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The ledger entries for each basis follow.
STAT Treatment and Other Treatment
Account | Account | Debit | Credit |
---|---|---|---|
1010000100 | COST OF INVESTMENTS | 10,000.00 | 0.00 |
2002000100 | INVESTMENT PAYABLE | 0.00 | 10,000.00 |
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