Proportionate Consolidation

I like it (insofar as it is possible to like an accounting method). It seems like the Equity method is mostly used to hide debt and artificially improve profitability ratios. What would be the disadvantages of using the proportionate consolidation method instead of the equity method? It would stop us having to muck about with VIEs and all that - there would be no incentive to muck about with off balance sheet debt, because it wouldn’t be off balance sheet! Do I get a seat on the IASB?

On the income statement, equity accounting allows for a very simple adjustment to push earnings to “below the line,” while proportionate consolidation would require more serious adjustments to revenue and OpEx (likely by going through the footnotes). Unadjusted, this would increase the non-cash items in EBITDA. On the balance sheet, proportionate consolidation would infalte all accounts (assets & liabilities) to include amounts in the JV, which are not under management control.