FRA - Help!!!

CFA Level II
#1

I understand proportionate consolidation. However, I am confused with consolidation method vs. acquisition method. Are these the same and used interchangeably?

#2

To the rescue… They are the same. Consolidation method = acquisition. There is equity method. Then proportionate consolidation. Then acquisition. I guess there’s also pooling of interests, which was old acquisition.

#3

Thanks Muffin!!! The more I study…the more confused! =(

#4

No problem! Just remember: Proportionate consolidation under US GAAP = equity method. IFRS it equals proportionate consolidation method.

#5

You can use the Equity method under IFRS also but the preferred method is proportionate consolidation

#6

Thanks guys!

#7

Guys One more question. Is net periodic cost the same as pension expense? The terminology in Schweser and CFAI doesn’t seem to match!!!

#8

They are the same.