# ASC 323-30-25: Investments—Equity Method and Joint Ventures — Partnerships, Joint Ventures, and Limited Liability Entities — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/323/30/#25-recognition)

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## ASC 323-30-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/323/30/#25-recognition)

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##### [323-30-25-1](https://asc.understandingaccounting.org/asc/323/30/#323-30-25-1)

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Investors in unincorporated entities such as partnerships and other unincorporated joint ventures generally shall account for their investments using the equity method of accounting by analogy to Subtopic 323-10 if the [investor](https://asc.understandingaccounting.org/glossary/i/#investor "A business entity that holds an investment in voting stock of another entity.") has the ability to exercise [significant influence](https://asc.understandingaccounting.org/glossary/s/#significant-influence "Paragraphs 323-10-15-6323-10-15-7323-10-15-8323-10-15-9323-10-15-10323-10-15-11 define significant influence.") over the [investee](https://asc.understandingaccounting.org/glossary/i/#investee "An entity that issued an equity instrument that is held by an investor.").

##### [323-30-25-2](https://asc.understandingaccounting.org/asc/323/30/#323-30-25-2)

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The elimination of intra-entity profits and the accounting for income taxes as provided for in paragraph [323-10-35-7](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-7) shall also apply to unincorporated joint ventures.