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UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION Washington, D.C.20549FORM10Q QUARTERLYREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthequarterlyperiodendedJuly3,2021OR TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934
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01
Obtain the financial statements of the affiliated companies.
02
Identify the line item for equity in earnings/losses.
03
Calculate the share of earnings or losses that belong to your company based on ownership percentage.
04
Record the equity in earnings/losses on your company's financial statements.

Who needs equityinearningslossesofaffiliatedcompanies?

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Investors who want to analyze the financial performance of their investments in affiliated companies.
02
Accountants preparing consolidated financial statements for a group of companies.
03
Managers making strategic decisions based on the financial results of affiliated companies.
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Equity in earnings/losses of affiliated companies represents the company's share of the profits or losses of investments in other companies in which it holds a significant ownership stake.
Companies that have investments in other entities in which they hold a significant ownership stake are required to report equity in earnings/losses of affiliated companies.
Equity in earnings/losses of affiliated companies should be reported in the company's financial statements under the investments section, typically as a line item separate from other income or expenses.
The purpose of reporting equity in earnings/losses of affiliated companies is to reflect the company's financial interest in the performance of its investments in other entities.
Companies must report the amount of earnings or losses from their investments in affiliated companies, as well as any adjustments for changes in value or ownership percentage.
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