# Equity method

> Equity method — Accounting for an investee over which the investor has significant influence — presumed at 20–50% of the vote — as one investment line adjusted by the investor's share of its earnings.

Source: https://lopifi.com/glossary/equity-method
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is equity method?** In accounting, equity method means accounting for an investee over which the investor has significant influence — presumed at 20–50% of the vote — as one investment line adjusted by the investor's share of its earnings.

## Words this system refuses for it

- consolidation
- proportionate consolidation

- **Category:** Multi-entity
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** equity