What is the difference between the Acquisition/Consolidation method? - 【CFA学习交流讨论】 - CFA论坛 | The Analyst Space

CFA论坛 » 【CFA学习交流讨论】 » What is the difference between the Acquisition/Consolidation method?

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发表于 2011-7-13 13:19 | 只看该作者

Well I'm pretty sure equity is the same under prop. consolidation OR equity method.

However, under the consolidation/acquisition method, equity is higher because you take into account of the minority interest's equity, since its' fully consolidated.

Someone correct me if i'm wrong please.

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发表于 2011-7-13 13:19 | 只看该作者

Proportionate consolidation and equity method display the same amount of equity.

Consolidation is different due to minority interest.

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发表于 2011-7-13 13:19 | 只看该作者

Theoretically you could own more that 50% of a Joint Venture. That would be Equity method under GAAP.

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发表于 2011-7-13 13:19 | 只看该作者

Perfect, Schweser says equity is the same under all three methods which must be errata.

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