o:28627 Informational scopes and the area of application of the equity method en 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 Key words: significant influence, joint control, equity method, consolidated financial statements, separate financial statement. 1552099 10.22190/FUEO191021013S 1552101 0354-4699 2023-04-06T13:09:24.272Z 44 no 46 Vojislav Sekerez Univerzitet u Beogradu Ekonomski fakultet 13466983 0000-0003-1009-0524 application/pdf 406145 https://phaidrabg.bg.ac.rs/o:28627 no yes 18 70 92000002 11A03 Facta universitatis. Series: Economics and organization 17 2 173 186 2020