- CFAI Book, P110, Q2: are all of the three options are correct? net income and asset base is sure to be lower in 2010 under an accelerated depreciation method, right? 2. Acquisition method produces the largest equity number due to minority interest, but is equity the same under both equity method and proportional consolidation method? Elan’s Eleventh Hour guide says equity is the lowest under equity method and i just don’t see why…
- See CFA Errata- you are correct. 2. Equity should be the same under both equity method prop consolidation…it is only higher under acquisition method b/c noncontrolling/minority interest is included.