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Simple English definitions for legal terms
at equity
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A quick definition of at equity:
Term: AT EQUITY
Definition: At equity means that something is being done fairly and justly. It is a way of measuring how much ownership someone has in a company or project. When someone has a share in something "at equity," it means they are getting a fair and equal portion of the profits or losses. It's like everyone is playing by the same rules and getting what they deserve.
A more thorough explanation:
Definition: At equity means that something is being done fairly and justly, according to the principles of equity. It can refer to a method of accounting for investments in which the investor has significant influence over the investee, but not full control.
Example 1: Company A owns 40% of the shares in Company B. Company A accounts for its investment in Company B using the equity method, which means that it records its share of Company B's profits or losses on its own income statement. This is known as accounting for the investment "at equity."
Example 2: Two business partners agree to split the profits of their joint venture "at equity," meaning that they will divide the profits fairly and equally between them, based on their respective contributions to the venture.
The examples illustrate the definition of "at equity" by showing how it can be used in both accounting and business contexts to refer to fair and just treatment. In the first example, the equity method ensures that Company A's investment in Company B is accounted for fairly, based on its level of influence over the investee. In the second example, the partners agree to divide the profits of their venture fairly and equally, according to the principles of equity.