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método de participación patrimonial

English translation: equity method

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:modo de participación patrimonial
English translation:equity method
Entered by: Giovanni Rengifo
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02:36 Feb 19, 2006
Spanish to English translations [PRO]
Bus/Financial - Finance (general) / financial statements
Spanish term or phrase: método de participación patrimonial
It appears several times in the following paragraphs:

Método de participación patrimonial

Al corte del mes de diciembre de 2005, las inversiones en sociedades en las cuales la casa matriz posee una participación mayoritaria, se contabilizan por el método de participación patrimonial.

Los estados financieros de las empresas vinculadas, tomados como base para la aplicación del método de participación patrimonial, corresponden al corte del mes de diciembre de 2005.

Efectos del método de participación patrimonial al 31 de diciembre de 2005.

I hope the finance experts will be around to give me a hand here.
Giovanni Rengifo
Colombia
Local time: 04:41
Equity method
Explanation:
Accounting: The Language of Business
The foregoing dictionary has the following definition for "equity method":
A method of accounting for an investment in the stock of another company in which the proportionate share of the earnings of the other company is debited to the investment account and credited to a revenue or income account as earned. When dividends are received, cash is debited and the investment account is credited. THIS METHOD IS USED IN REPORTING WHEN THE INVESTOR OWNS SUFFICIENT SHARES OF STOCK OF AN UNCOLIDATED COMPANY TO EXERCISE SIGNIFICANT CONTROL OVER THE ACTIONS OF THAT COMPANY. (The capital letters are my emphasis.)
Most of the time, the term in Spanish (at least in Mexico, anyway) is "método de participación".
Considero que la palabra "patrimonio" en el español, sale sobrando en este caso.
Hope this helps.
17 years translating for Mexico City based accounting firms, banks, brokerage firms, financial entities in general, Instituto Mexicano de Contadores Públicos, A.C.
Former English teacher at CELE-UNAM (accredited) & CENLEX-IPN
Resident of Mexico City for 40 years.

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Note added at 35 mins (2006-02-19 03:12:38 GMT)
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The following website has this definition for the "equity method":
http://www.sbea.mtu.edu/acwarrin/BA4370/HoyleCh01Outline.doc (MICROSOFT WORD)

C. Equity method—applied when the investor has the ability to exercise significant influence over operating and financial policies of the investee.

1. Ability to significantly influence investee can be indicated by several factors including representation on the board of directors, participation in policy-making, etc.

2. According to a guideline established by the Accounting Principles Board, the equity method is presumed to be applicable if 20 to 50 percent of the outstanding voting stock of the investee is held by the investor.
Selected response from:

Richard Cadena
Mexico
Local time: 04:41
Grading comment
As usual, thank you for such a thorough answer.
4 KudoZ points were awarded for this answer

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Summary of answers provided
5 +3Equity method
Richard Cadena
5consolidation
marybro
3equity participation method / methodology
Xenia Wong


  

Answers


7 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
método de participación patrimonial
equity participation method / methodology


Explanation:
Sug.

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Note added at 9 mins (2006-02-19 02:46:16 GMT)
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GUIDELINES FOR EXTENDING EQUITY SUPPORT TO HOUSING FINANCE COMPANIES
A HFC who desires to avail of equity participation from NHB under the scheme ... Under PECV method, weighed average of profit after tax for the last three ...
www.nhb.org.in/Promotion/equitysup.htm - 15k - Cached - Similar pages

Washington Group International - Integrated Services - Equity ...
Our equity participation translates into lower-capital cost requirements and increased ... Utilizing an innovative cut-and-fill underground mining method, ...
www.wgint.com/equity.html - 28k - Cached - Similar pages

[PDF] UBS has established several equity participation plans to fur ...
File Format: PDF/Adobe Acrobat - View as HTML
value method of accounting for its equity participation plans. The fair value method would recognize expense equal to the ...
www.ubs.com/1/ShowMedia/about/cg/capitalstructure/asat2004?... - Similar pages

The Business Link - Methods of Financing Your Business
... a public share offering can be an attractive method of obtaining financing. ... Some venture capital sources may consider equity participation if your ...
www.cbsc.org/servlet/ContentServer?cid=1104766631439&pagena... - 86k - Cached - Similar pages

Xenia Wong
Local time: 04:41
Specializes in field
Native speaker of: Native in SpanishSpanish, Native in EnglishEnglish
PRO pts in category: 286
Login to enter a peer comment (or grade)

14 mins   confidence: Answerer confidence 5/5 peer agreement (net): +3
método de participación patrimonial
Equity method


Explanation:
Accounting: The Language of Business
The foregoing dictionary has the following definition for "equity method":
A method of accounting for an investment in the stock of another company in which the proportionate share of the earnings of the other company is debited to the investment account and credited to a revenue or income account as earned. When dividends are received, cash is debited and the investment account is credited. THIS METHOD IS USED IN REPORTING WHEN THE INVESTOR OWNS SUFFICIENT SHARES OF STOCK OF AN UNCOLIDATED COMPANY TO EXERCISE SIGNIFICANT CONTROL OVER THE ACTIONS OF THAT COMPANY. (The capital letters are my emphasis.)
Most of the time, the term in Spanish (at least in Mexico, anyway) is "método de participación".
Considero que la palabra "patrimonio" en el español, sale sobrando en este caso.
Hope this helps.
17 years translating for Mexico City based accounting firms, banks, brokerage firms, financial entities in general, Instituto Mexicano de Contadores Públicos, A.C.
Former English teacher at CELE-UNAM (accredited) & CENLEX-IPN
Resident of Mexico City for 40 years.

--------------------------------------------------
Note added at 35 mins (2006-02-19 03:12:38 GMT)
--------------------------------------------------

The following website has this definition for the "equity method":
http://www.sbea.mtu.edu/acwarrin/BA4370/HoyleCh01Outline.doc (MICROSOFT WORD)

C. Equity method—applied when the investor has the ability to exercise significant influence over operating and financial policies of the investee.

1. Ability to significantly influence investee can be indicated by several factors including representation on the board of directors, participation in policy-making, etc.

2. According to a guideline established by the Accounting Principles Board, the equity method is presumed to be applicable if 20 to 50 percent of the outstanding voting stock of the investee is held by the investor.



    Reference: http://aicpa.org
    Reference: http://imcp.org.mx
Richard Cadena
Mexico
Local time: 04:41
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 355
Grading comment
As usual, thank you for such a thorough answer.

Peer comments on this answer (and responses from the answerer)
agree  Andy Watkinson
22 mins
  -> Thank you, Andy. Best regards from Mexico City, Richard.

agree  tangotrans
8 hrs
  -> Thank you, Tangotrans (I don't know your name). Saludos from Mexico City.

agree  marybro: se contabilizan por el metodo de participacion patrimonial...."consolidated" or accounted for under the equity method
12 hrs
  -> Thank you, Mary. I always welcome your observations because you are an accountant. Saludos from Mexico, Richard.
Login to enter a peer comment (or grade)

18 hrs   confidence: Answerer confidence 5/5
método de participación patrimonial
consolidation


Explanation:
another option - Good luck!
only for the heading of your cited text

consolidation (when one company controls another)

later in the text, I would use Richard's suggestion (...consolidated/accounted for "under the equity method"

see this example:
http://www.sbea.mtu.edu/acwarrin/BA4370/HoyleCh01Outline.doc

marybro
Local time: 05:41
Works in field
Native speaker of: English
PRO pts in category: 84
Login to enter a peer comment (or grade)




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