equity method vs acquisition someone, methods, sometimes, different

grharmeyer

I'm very confused about the treatment of equity under each of the 2 methods. In schweser they say it remains unchanged while in the cfai books I see different answers. sometimes unchaged, sometimes lower than prop consolidation and acq method...

can someone share some inspiration on this? it's really confusing and there will be questions on ratios in hte exam!

tarunajwani

LOL

NO EXCUSES

YAhmed

schweser is wrong, check their errata and search this forum

llxx

the schweser notes are wrong, and this question has been asked several times. Since minority interest is now a part of equity, the methods all lead to different values. Trust the cfa stuff on this point.