what are the problems with the equity accounting method 
one critique of the equity accounting method is that it does not provide usable insights to investors although it records the assets and profits of an investee in its own financial statements the investing company does not actually control how the investee uses its assets and it does not receive any financial profit unless that company chooses to pay a dividend 3the bottom linethe equity method is an accounting technique for reporting financials when one company invests in another if the investing company has a significant stake the company will report the value and profits of the investee on its own financial statements 