quick question - Intercorporate Inv into, question, includes, equation

eagles_dare13

Comparing Equity method to Consolidation (acquisition method), is Equity the same between those two, assuming its shares purchase are less than 100%?
Schweser flat out tells you they are the same, but doing EOC #3 (Reading 21), CFAI tells you equity is higher under consolidation (looks like CFAI includes minority(non-controlling) interest into the equity equation, am i getting this right?

maratikus

Use the search function.
Net Income is the same in the two methods.
Equity is higher in Acquisition method.

maratikus

Schweser is wrong on this one for sure. I have not checked their errata though.
Equity under Equity method and Acquisition method will NOT be same, unless it is a 100% acquisition.
Edit: Previously NCI was reported under mezzanine section and not under Equity. So, Equity was same then. Schweser needs to update its text for this accounting change.