US Board Adds Project to Streamline Equity Method of Accounting

US standard-setters will take a fresh look at a complex accounting method for certain strategic partnerships and joint ventures.

The Financial Accounting Standards Board voted Wednesday to add a project to its technical agenda focused on streamlining the equity method of accounting, a top priority cited by financial statement preparers in recent public input. Board members directed staff to perform additional research and outreach on what a plan could entail.

Pharmaceutical giant Eli Lilly & Co. and financial technology firm Block Inc. were among those that critiqued the method as overly complicated and costly to apply in recent comment letters ...