Prop. Conso Vs. Conso. Vs. Equity

Just to recap… Prop. Conso is the preferred method for IFRS JV but can it be used in other cases than for JV ? Assuming a firm acquires 56% of another one… Does it have to absolutely use consolidation?

56% and whether they are in control, if non-voting shares, they still need to use equity US GAAP allows rare cases of Porportional consolidation, not all equity

Ok… I get it for US GAAP… But for IFRS… Assuming 56% & Control… Prop. Conso or Conso? I guess it would be consolidation… because of the control perspective… That means that Proportionate Conso. is only used in JV for IFRS & in extremely rare case for US GAAP JV (uninc. venture firm…) ?

VinceMTL Wrote: ------------------------------------------------------- > That means that Proportionate Conso. is only used > in JV for IFRS & in extremely rare case for US > GAAP JV (uninc. venture firm…) ? Correct. I believe that Prop COnsolidation in IFRS only applies to Joint Ventures. Check in the book to be sure - look in the index for joint ventures.

56% control ,no doubt consolidation IFRS 50% using Proportio conso, JV using Proportio right about US