Question 23 reads: “Based on Ohalin’s estimates, the amount of joint venture shareholders’ equity at 31 December 2010 included on the consolidated financial statements of each venturer will most likely be:” It’s pretty obvious SH equity will be the same under the equity method and proportionate consolidation. However, the question wasn’t asking that (in my mind). What they are asking is, what proportion of Joint Venture’s equity will they include on their consolidated financials. In the case of the equity method, they are including none. You are making an investment and recording an asset as a result. You’re not taking any of the Joint Venture’s equity and including it in your financials. Can someone please clear this up? Question 29 reads: “Based on Byron’s forecast, NinMount’s 2009 return on beginning equity will most likely be the same under:” Beginning equity under equity method is 1430, which I understand. But how is NCI included under the consolidation methods? It is the beginning of period equity that is used, and the transaction was conducted on December 31 2008, which is the ending period. How is this possible?
- since it’s equity method and prop consolidation, Joint Venture’s equity does not get consolidated on the either BetterCare or Statewide’s BS 29. NI is the same under all three methods. It asks for 2009 return, so beginning equity for 2009 is end 2008 + effect of transaction (i.e. add MI)