A Career In Forensic Accounting

Equity method accounting is used when an investing company owns stocks of another affiliate company.

Equity method accounting factors in the increase or decease in profits of the invested company.

Before going further, it is important to note that if a parent company owns over 50% of a subsidiary company, equity method accounting is not allowed. If understood correctly, the profits or losses of affiliate companies can help forecast the total equity of the company.

Equity method accounting highly increases the appearance of financial standing.

Equity Method Accounting Makes a Big Difference

What Is Forensic Accounting?The forensic accountant calculates damage and helps in settling disputes before they reach the courtroom. For example, a forensic accountant may be hired to search for hidden assets in a divorce case.Who Hires Forensic Accountants?There are a number of industries that hire forensic accountants. To be a forensic accountant, you generally require a CPA designation. In short, forensic accounting requires you to possess the ability to think logically. A capable forensic accountant must possess curiosity, persistence, discretion, organization, confidence, professional judgment and creativity.