SFoyil

Well I'm pretty sure equity is the same under prop. consolidation OR equity method.

However, under the consolidation/acquisition method, equity is higher because you take into account of the minority interest's equity, since its' fully consolidated.

Someone correct me if i'm wrong please.

wxs1986

Proportionate consolidation and equity method display the same amount of equity.

Consolidation is different due to minority interest.

NO EXCUSES

stalkey

Theoretically you could own more that 50% of a Joint Venture. That would be Equity method under GAAP.

economicz

Perfect, Schweser says equity is the same under all three methods which must be errata.