The article offers information on the Accounting Standards Update (ASU) 2016-07, Simplifying the Adjustment to the Equity Method of Accounting, issued by the Financial Accounting Standards Board (FASB) in March 2016. The main aim of the ASU 2016-07 is to identify, evaluate and improve areas of U.S. GAAP for which cost and complexity can be reduced, a welcome simplification of the equity method of accounting for investments.