Under the equity method, the investor recognises its share of the associate's profit for the period in its profit or loss; dividends received from the associate reduce the carrying amount of the investment. The method is used for associates and joint ventures.
Source: TAS 28
Related terms
AssociateAn entity over which the investor has significant influence but not control or joint control.Joint ventureA joint arrangement in which the parties with joint control have rights to the net assets of the arrangement.ConsolidationCombining the financial statements of a parent and the subsidiaries it controls as if they were a single economic entity.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.
Last updated: October 22, 2026 · This definition is for general information only.