Equity method


Companies which have a relationship to the group that is less close than one of having the same management, but stronger than a normal shared ownership, are visually presented in the annual financial statement using the equity method. These companies are usually called associated companies. This significant influence should be reflected in the consolidated statement, in the sense that the associated company is indicated in the consolidated statement, not by stating acquisition costs, but by stating proportional equity (at equity).


Legal provision: Article 312 of the German Commercial Code (Valuation of participation and treatment of the difference sum)


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