Why is non-controlling interest added here? Shouldn’t the shareholders’ equity be the same under all three methods (according to SchweserNotes!)??
Schweser is wrong on this, search the forum and check the errata.
Don’t see any errata. I agree. Agree with Mimician. Don’t get this question.
Shareholder’s equity is not the same. Please use search. It was errata on Schweser.
Ok I see it. But just a comment, I think this question seems misleading. Since we determined that equity method should be used ealier…the question does not state clearly to disreagrd that and now use full conso.
I got this question wrong too. My understanding was Under Equity method, the equity would be choice A (1300) Under proportionate consolidation method, the equity would be choice A too. Equity would be same under equity and proportionate consolidation. Under full consolidation method, the equity would choice C (2300)…coz 100% consolidation. Obviously my understanding is wrong. Anyone could please tell me what the correct way is ?
i got this wrong too, the only explanation i have as to why they used minority interest is that the question says: “If Merick prepared a CONSOLIDATED balance sheet…” that’s the only word that i found that would lead to the answer, but again pretty tricky