CFA Practice Question
For the investor, which of the following is identical under the equity method and the proportionate consolidation method?
II. The total assets recognized.
III. The net total assets recognized.
I. The total income.
II. The total assets recognized.
III. The net total assets recognized.
A. I and II
B. I and III
C. I, II and III
Explanation: Only the total income and net total assets are the same.
User Contributed Comments 1
User | Comment |
---|---|
richmondo | Of course - equity method only shows net position - not the gross assets + gross liabilities |