50/50 joint adventure share holders equity

It’s one of the CFAI EOC question. FRA book P163. in a 50/50 joint adventure, one company uses equity and the other uses proportional consolidation method. My understanding is, for equity method, only one line add to earning of parent company. For porportional consolidation, all lines are included including asset, liability and share holders equity. Clearly, the share holder’sequity is differrent for differrent method. However, the answer is confusing to me. Can anyone explain what did I miss? “The choice of equity method or proportionate consolidation does not affect reported shareholders’ equity.” (Institute P168) Institute, CFA. Level II 2013 Volume 2 Financial Reporting and Analysis. John Wiley & Sons (P&T)

BTW, it’s Question #23, I chose B.

Equity method has 2 lines of adjustments. One on the BS and one on the IS.

On the IS, equity method adjusts for the proportional amount of net income. On the BS, the equity method adjusts the book equity of the parent by their porportional share of the JV’s book equity.

So, equity method results in an increase of both NI and book equity. Therefore, both the proportional consolidation and equity methods will have the same reported book equity.

Had to read the CFAI book again. Here is my take. It’s only related the Balance Sheet. The JV has a balanced A=E+L. Equity method has one line “investment in JV”, which is the same result of aggregating 50% of JV’s BS items. Both equity and consolidation methods kind of adding same thing in differrent forms.