interest coverage ratio by accounting investment in associates, why no change?

CFA Level II
#21

what I meant is something got substracted from the sum of parent’s EBIT and sub’s EBIT.

But am not sure it is “equity earning” or “non-controlling interest”, because they happen to be same amount in that question.

#22

Basically, I want to know how to calculate EBIT under acquisition method. Thanks.

#23

OK. Then simply add operating revenue of sub to operating revenue of parent and do same for operating expenses. If sub is not under 100 % owned by parent, minority interest is not part of EBIT thus cannot be substracted from EBIT.

#24

Thanks!