ningning1984

>
> 1) In equity method, does the equity change or it
> remains same?I know in acquisition it changes and
> is highest but what abt in equity and prop
> consolidation...

If you raise the funds necessary to make the equity investment through issuance of new shares, your equity will be higher. If you use your readily avalible cash to make the investment, then there will no difference in equity. If you borrow for the same reason, your liabilities will increase. In other words, it depends on how you finance the investment.