Equity Method – Half year on income???

  • Creator
    Topic
  • April 8, 2014 at 4:47 am #184831
    Mike
    Participant

    So, if you buy say 40% on June 30. At Dec 31 do you use 40%*50%*NI or a full year at 40%*NI to get your income. I am not talking about going from cost to equity, just using the equity method. Hard to find a straight answer on this anywhere.

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  • April 8, 2014 at 4:45 pm #542950
    stoleway
    Participant

    Youve only owned 40% of the company for half of the year, so the portion of your revenue wil be 40% x 50% NI

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

    April 8, 2014 at 4:45 pm #542979
    stoleway
    Participant

    Youve only owned 40% of the company for half of the year, so the portion of your revenue wil be 40% x 50% NI

    REG -63│ 84!!
    BEC- 59│70│ 71 │78!
    AUD- 75!
    FAR- 87!

    Mass-CPA

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