Investments accounted for by the equity method are initially recorded at cost.

Name: Investments accounted for by the equity method are initially recorded at cost.
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Investments accounted for by the equity method are initially recorded at cost, which is the amount paid to acquire the investment. The investor's share of the investee's net income or loss is then added or subtracted from the carrying value of the investment each period.

Investments Accounted for by the Equity Method Are Initially Recorded