in their solution, they said: “the equity method is one-line consolidation, the net income and common equity are the same but the reported revenues, assets and liabilities would decrease” what dose it mean"one line consolidation" when they say" the same ", compare to using the consolidation method? thanks.
I guess one-line consolidation means you only put a number in the the account" investment in subsidiary" in the Balance sheet for the equity method
And its one line on the income statement too. If you have a subsidiary that you account for by equity method, the results from your share show up in one line on you I/S as “Equity Income”