off-balance sheet items are not transparent. Under the equity method, the investment is recorded at cost and is subsequently adjusted to reflect the share of net profit or loss and dividends received.

While every balance sheet will contain assets, liabilities and equity, the document will vary ... But he notes this method increases the chances of mistakes. For instance, someone writing their ...

Reviewed by Gordon Scott Fact checked by Yarilet Perez Return on Equity (ROE) vs. Return on Capital (ROC): An Overview Return ...