Impact on shareholders' equity

CFA Level II
#1

Hi all, Looking for clarity on the change in shareholders’ equity from each of these methods: - consolidation - proportionate consolidation - equity method Many thanks

#2

all 3 methods report the same net income and equity.

#3

SAME

#4

Thanks friends

#5

I have no idea if the questions in the back of the CFAI readings are any indication of what the test will concentrate on. However, certain topics were definitely covered more heavily than others and this was one question they kept drilling. I think 3 of the vignettes related to this reading asked, in some form, how NI/equity are affected by using the different methods. And of course, each time the answer was that NI and equity (and of course ROE) are the same under all three methods.