If A is minority active to B, owning say 50%, with significant influence but no control, using the equity method, would the cash balance of the investor A include the 50% of the cash balance of investee B on the consolidated BS?
cash should not play any part on that calculation at all. minority active investment with equity method would show a one line investment account on the balance sheet of investor (in this case I am assuming A).
Oh, I got it. I had an example from one year before to another year after investment, and the difference in the cash balance was in fact the NI that A produced the year before investment. Coincidentally, it was half of B’s cash balance. Stupid me. And yes, the investment in investee would be adjusted for the share dividends (return of capital) and any (if existing) share in assets depreciation (if fair value was in excess of book value, and was attributed to PP&E). Thanks CP.