If we are asked to calculate net income using the consolidation / acquisition method, would this just be the same as taking % owned of equity income and adding it to parent net income (like in the equity method) ?
yes
thanks
net income would be the same under either method.
but note that revenues and other aspects of the income statement would be higher (100% addition of the acquired company). the reason net income is the same under either method is because we include minority interest under the acquisition method (brings down net income by the amount of acquired company’s income not owned)