equity Income = ?

CFA Level II
#1

What exactly does this include? Is it the % of NI for the equity method? or is it just dividends recieved? or both?

#2

% of (NI - Dividends) edit: sounds like i’m probably wrong

#3

Just % of NI received.

#4

supersharp, check here: http://www.analystforum.com/phorums/read.php?12,996779

#5

ok because INVESTOPEDIA uses equity income as DIVIDENDS. what is it?

#6

just % income, the - dividiend is how you account for it on the B/S On the IS its just the %income

#7

i don’t understand in this thread people say the entire amount shows up on the income statement then in the thread you linked you say that the dividends don’t go through the income statement

#8

For the equity method, earnings are just your % share of the NI of the investment. The dividends should up separate in the cash flow statement. CF Reconciliation NI - Income from equity affiliate + Dividends received from equity affiliates The B/S figure will increase every period by the share of net income LESS the share of dividned.

#9

Dont forget the deduction for amortization of fv assets over book.