the question 3, regarding the Cinnamon’s Shareholder’s Equity on its balance sheet thought the equity should be same for either Equity method or Consolidation with minority interest, according to the schwser notes book2 page 30( same net income. same equity) but the answer is A , and the explanation on page 75 states that on consolidated statement the equity would increase and include the amount of the non controlling interest. Regarding the similar question, shall we treat the equity as the Total Equity (ie including minority interest according to curriculum ) or just the net equity to Cinnamon’s only , which would be same across three different accounting methods ( according to notes)?
I just did this question an hour ago and I got it wrong too. That makes it a little tricky to try to read into if they mean Stockholders equity before of after Minority interest. Everything I looked at said SE is Identical
Guys, have a look at the Errata on Schweser - they got this one totally wrong in the text. The equtiy section is NOT the same for equity and acquisition method. Got me totally confused as well
Is it just me or is this a GIANT errata?