Simple question on Equity Method on FSA

For the equity method for minority active intestments, you add the % of BV owned + %NI - dividends as an ASSET called Investment Account on the B.S right? (explained on bottom of pg. 119 on Schweser). Now shouldn’t Equity increase since you have an increase in Assets? However, i keep reading that EQUITY remains the same for Equity or Consildation methods. Am i missing something here???

You have an offsetting credit to an account on the income statement called something like “equity in earnings of unconsolidated affiliate”. Since the income statement gets closed out to retained earnings, you are effecitvely increasing equity. With a consolidation you have line by line items from the sub included on the income statement (essentially total net income gets rolled in line-by-line) and the % of net income that you don’t own is subtracted out as minority interest. So, equity method single line treatment of aprt you own on income statement, consolidation line-by-line inclusion less what you don’t own. Net effect is the same

yes. for consolidation, the minority interest is not yours.