joemoran

I did a couple of valuations for some companies with controlling interest in other companies….a few years ago, and I think that the reasoning behind it is that US GAAP requires the balance sheet (and therefore income statement) to show all the assets you control. So I guess that as an investor you need to see the big picture of all the assets you are controlling.
But as I said…I am not 100% sure since I never really paid too much attention to it; someone working in accounting/auditing might give you a more accurate answer.
for testing purpuses just keep in mind that your are consolidating all the assets and income and then you are taking out the portion you don’t really own.