I am unclear, what does the Acquisition method do to the income statement? According to Q 12 in reading 21, net income is not affected by accounting method, but in Q 6 in the same reading it appears you add the buyer and the subsidiary income statement items together…
Comparing to other methods (equity, proportionate consolidation), it affect accounting ratios differently
correct me if i am wrong but across all 3 methods…dats equity, aquisition n proportionate…ni n equity are not effected …
Minority interest is now reported under equity, not liabilities. Thus equity wont be the same under all methods. I assume you’re using schweser. Check schweser errata-they made a big mess up of this
All revenues and expenses are added together. Before your arrive at net income, you deduct the minority share portion of net income, which is total income multiplied by non-controlling interest share of net income.