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

Name: Investments accounted for by the equity method are recorded initially at cost.
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Investments accounted for by the equity method are recorded initially at cost, which is the amount paid to acquire the investment. The carrying amount of the investment is then adjusted over time for the investor's share of the investee's earnings or losses, as well as any dividends or distributions received.

Investments Accounted for by the Equity Method Are Recorded Initially