Use of the equity method results in the investment account approximating the:

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The equity method is used to account for investments in which an investor has significant influence over an investee (usually defined as owning 20-50% of the investee's voting stock). Under the equity method, the investor reports its share of the investee's net income or loss on its own income statement, and records its share of the investee's equity (i.e. assets minus liabilities) on its balance sheet as an investment account. Therefore, the use of the equity method results in the investment account approximating the investor's share of the investee's equity rather than the original cost of the investment or the investee's market value.

Use of the Equity Method Results in the Investment Account