True or False

CFA Level II
#1

Equity & Proportionate Consolidation report same Equity. True/False Equity & Proportionate Consolidation report same Net Income. True/False Acquisation method equity will be highest. True/False

#2

TTT

#3

True True True

#4

Therefore, ROE = same for both Proportionate Consolidation & Equity Method. ROE = Lowest for Consolidation (or does it change?)

#5

All three are True 1: Proportionate and Equity - you will report your portion of the ownership therefore same amount of equity 2: NI is same for all 3 methods 3: Acquisition includes minority interest, therefore highest equity

#6

Assume x% ownership where 20%

#7

Consolidation: NI = Total NI - Minority Interest

#8

all in all, NI = same for all 3 methods, Equity = same for Proporitonate & consolidation Equity = highest for Consolidation

#9

Chicago_Bull Wrote: ------------------------------------------------------- > all in all, > > NI = same for all 3 methods, > > Equity = same for Proporitonate & consolidation > Equity = highest for Consolidation Yes also remember: ROA/ROE/Profitability: Equity > Proportionate > Consolidation

#10

COrrect…