https://gdpark.blog/tags/equity-method/Recent content in Equity Method on gdpark.blogHugoenFri, 10 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-27-fra-orientation-and-overview/Sun, 05 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-27-fra-orientation-and-overview/A quick orientation on CFA Level 2 FRA — ditching the shallow-but-wide Level 1 style to go deeper on 5 big themes, kicking off with intercorporate investments.https://gdpark.blog/posts/cfa-l2-28-investments-in-financial-assets/Sun, 05 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-28-investments-in-financial-assets/A casual breakdown of the three types of intercorporate investments — financial assets, associates, and subsidiaries — and how to tell them apart on exams and in real life.https://gdpark.blog/posts/cfa-l2-29-equity-method-accounting-fundamentals/Mon, 06 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-29-equity-method-accounting-fundamentals/A breakdown of why associate stocks skip fair-value measurement and how the equity method pipes B’s net income straight into A’s books to close the dividend-manipulation loophole.https://gdpark.blog/posts/cfa-l2-30-equity-method-accounting-advanced-topics/Tue, 07 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-30-equity-method-accounting-advanced-topics/Real-life equity-method: BV ≠ FV, a control premium gets stapled on top, and you’ve gotta reconstruct income from an FV lens — exactly what the CFA exam tests.https://gdpark.blog/posts/cfa-l2-31-equity-method-accounting-intercompany-transactions-and-impai/Wed, 08 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-31-equity-method-accounting-intercompany-transactions-and-impai/A casual breakdown of how intercompany transactions mess with your equity-method income — upstream, downstream, unrealized profits, and when impairment comes knocking.https://gdpark.blog/posts/cfa-l2-32-proportionate-consolidation/Thu, 09 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-32-proportionate-consolidation/A quick breakdown of proportionate consolidation — folding in assets, liabilities, revenues, and expenses at your exact ownership %, and why accounting standards don’t actually use it.https://gdpark.blog/posts/cfa-l2-33-full-consolidation-the-acquisition-method/Fri, 10 Jan 2025 00:00:00 +0000https://gdpark.blog/posts/cfa-l2-33-full-consolidation-the-acquisition-method/A casual breakdown of why full consolidation wins over proportionate consolidation, how NCI keeps the balance sheet balanced, and what it does to your ROE and ROA.