2020 Facta universitatis. Series: Economics and organization 17(2) Key words: significant influence, joint control, equity method, consolidated financial statements, separate financial statement. http://creativecommons.org/licenses/by-nc-nd/4.0/legalcode application/pdf 406145 bytes Informational scopes and the area of application of the equity method Abstract: The equity investments in other entities may result in different level of control over their activities and different consequential relationships between the investors and investees. For the purposes of valuation of the investments in associates and joint ventures, which are followed by significant influence or joint control of the investor, it is necessary to use the equity method. Its application is connected with the number of specific issues that result in a completely different accounting treatment of some business transactions in relation to the acquisition method and consolidation of subsidiaries. The aim of this paper is to analyze the key features and area of application of the equity method, which will be accompanied by the reference to some of its most obvious advantages and disadvantages info:eu-repo/semantics/review https://phaidrabg.bg.ac.rs/o:28627 doi:10.22190/FUEO191021013S ISSN: 0354-4699 Sekerez, Vojislav eng