There are two methods of accounting for investments in stock: (1) the cost method and (2) the equity method.

股票投资有两种会计核算方法：（1）成本法（2）权益法。

youdao

If the investor can exercise a significant influence in a long-term investment situation, the equity method must be used.

如果投资者在长期投资的情况下，可以行使重要影响，则需使用权益法。

youdao

Understand the effects of dividends received and investee income on the financial statements of the investor under the equity method.

了解在权益法下收到的股利与被投资方收入对投资方的财务报表的影响。

youdao

Sony Ericsson, the joint venture in which Ericsson (NASDAQ:ERIC) has 50% of the shares and is accounted for according to the equity method, today reports its Q4 and full year 2011 results.

ENGADGET: Sony Ericsson swallows $317 million pre-tax loss as end draws near

Moreover, the convoluted method of determining what common equity is reinforces the belief that no one really knows, or can calculate, what capital is by looking at a bank statement.

FORBES: Fed Shocks Small Banks With Basel Proposal, 2,000 Banks Could Disappear