Discuss on Accounting for Equity Securities

Basic objective of this article is to Discuss on Accounting for Equity Securities. An equity security is an investment in stock granted and issued by another company. The accounting for an investment in an equity security depends on the amount of command of and influence over operating decisions the organization purchasing the stock has in the company issuing the stock. Here briefly discuss on two methods they are Cost method and Equity method. If under 20% of the stock is acquired no significant influence or management exists, the investment is accounted for while using cost method.