How bad did this screw me?

I completely made a awful mistake and thought that the intercorporate investment section was proportionate consolidation and then the other was consolidation (it was equity method) . If I remember right there was like 4 questions about the effects of using one or the other. Since I thought it was consolidation rather than equity, I feel like I may have missed 4 questions by choosing the opposite of the right answer… Anybody remember?

Are you talking about Yanna company?

ouchie mama. the roe was same both so you should’ve been ok there. the other half of that q was d/e- i think d/e went up. so you are saying you put down b/c you thought it compared consol to prop? ouchie mama. i’m sure you’ll make those points up somewhere.

nope not that bad, you would have got the revenue question right, and at least one of the ratios right

I thought it was talking about consoldation as it owned 50% of it?

Wasn’t it like… one company owns 50% and the other company company owns 50% and the latter using proportionate consolidation? There’s we are comparing prop consol vs consol? I do remember putting that the debt / equity ratio would be higher thoug if it were to convert…

didn’t it also state they had “controlling” interest too or am I thinking of a different question? I do remember an all-current answer of $57 for NI.

Yes, but if it is exactly 50, then its equity. I at least got the 1305 question right. I should have caught myself right at that point. I was thinking to myself, you don’t have an “investment in XXX” account using consolidation. You would think I would catch myself there but no. When I realized that I wanted to throw up

I thought consolidation too. Didn’t it say something about director seats?? Please say it did, because I’m screwed if it didn’t

You use equity method exclusively if you have control. That is the statement that threw me off too. From what I understand, you could even own 50% with NO control, then you use cost method and not even equity. big mistake though, because that was the only freakin easy section besides all current

(1) any one got 66.7 translated net income for this one? (2) revenue of … was choosen, instead of dividend for the proportional consolidation (3) investment account=1000(purchase cost)-half of the dividend+half of the earning?

It was Equity method. There was no control, just influence. 50/50 is equity or prop consol under IAS and Equity under US GAAP

Arse! How many questions would this have affect Mcleod?!

It was Equity method. they mentioned it later also in another question. What if they chose consolidated method or something instead of equity

pvt - in the later question, did they specfically mention “instead of equity” because I would’ve got that right if they did…

bump - how many questions did it screw me over if I thought it was consolidation instead of equity?

as i remember there were some questions related with equity method, where 50/50 ownership for noncontrolling company, and the other part of questions related to consolidation, as it was steted that one of the companies has effective control.

For the question “Which one is Yanna likely to report on its income statement” which one did you guys put?

1355 was the answer, Caspian

I hope so. Hey cfaboston, I think you were in my section for LI, where were sitting on Sat?