Is this true?? But I thought NI is the same under both consolidation and equity, implying that EBIT should also be the same under both. No?
there is no need that EBIT should be the same? each company has its own independent structure, costs, etc. Also interest expense. NI matches up - because of the Minority Interest adjustment under consolidation.
EBIT higher under consolidation makes sense to me. The key distinction seems to be that under the equity method, equity earnings already have interest and taxes taken out. Interest and taxes will be higher under consolidation so EBIT will also be higher under consolidation (Someone please correct me if that is wrong)