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Module I· Consolidation & Equity MethodIntermediate
Question

How do full consolidation, proportionate consolidation, and the equity method differ?

Answer

Full consolidation brings in 100%; equity method records one-line investment and share of profit; joint operations recognize the investor's share of assets, liabilities, revenue, and costs.

Deep diveShow more details

For valuation, check whether EBITDA excludes material associates. Use look-through EBITDA or SOTP when associates / JVs are material.

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