An accounting approach for calculating and disclosing investments in equity securities is called the equity methodology. With an emphasis on its definition, use, and financial reporting consequences, this abstract analyses the equity approach. It examines the crucial factors to take into account when deciding whether to use the equity method and the effects it has on the financial statements. The conclusion of the abstract emphasises the significance of accurate and transparent reporting in representing the financial status and performance of a business, as well as the keywords connected with the equity approach.
