Total Assets: Proportional Consolidation vs Equity Method helpful, remember, why, question, free

bdavi77962

I might be just really tired at this point. But one of the schweser mock exams mentioned that total assets will be higher with proportional than equity. I can’t rationalize why, thoughts?
Also if this question is blatantly obvious: remember to DIVIDE the option value calculated with binomial method by (1+risk free rate) . Hope this was helpful

mkytz15

g3r41d wrote:
Equity Method: Decrease in cash, increase in equivalent investment account in associate
Acquisition Method: Decrease in cash, increase in asset and liability. Minority interest in equity section.
Proportionate Consolidation Method: Decrease in cash, increase in propotionate asset and liability. No minority interest.
Very good!