The document provides an overview of the equity method of accounting for investments. It discusses three methods used to account for equity investments - the fair value method, consolidation method, and equity method. The equity method is applied when an investor has significant influence over an investee. It involves adjusting the investment account for changes in the investee's equity and accruing the investor's share of the investee's earnings. Special procedures are also outlined for applying the equity method, such as retrospective adjustments when changing to the equity method and deferring unrealized profits on inventory transfers between the investor and investee.