YAhmed

If you buy less than 20% of a company, you have to record it as either available-for-sale or held-for-trading, and you record it at fair value/market value.

If you buy more than 20% and less than 50% *but* most importantly you have no control over the company, then you record it using equity method, as grumble stated above.

If you own more than 50% (or you have control), then you add *all* assets and liabilities of the company to your assets and liabilities. To account for parts that you don't own, you have to deduct from your equity the minority interest, and also from your income statement you have to deduct earnings not yours.

... sounds about right.