Question 5, AdOre case: I think the author is not consistent (or I miss something). When comparing both methods (joined venture vs full consolidation), they say equity remained unchanged in 2012, which would suggest acquisitions have been done with cash (cash down, investment in associates up—no change to eq); but if you read further, they say that total assets include 50% of AdOre—well yeah, but given they had to pay for it, that does not change Total Assets—unless they have not paid with cash, but issued equity, but in that case equity (above) would go up?
Anyone any thoughts?
Bump!
Actually, found our answer:
http://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91333223