Intercorporate investments

[sunpak]

Under the equity method, where does the % share of the income come in the P/L statement?
Is it before EBIT as part of normal operations or below EBIT?

 

[sachin_patel]

Forget EBIT, its below net income.. (thanks to “Would You Look”)

 

[Galli]

It’s definitely included in the net income total, it’s just not taxed.

 

[sachin_patel]

it would be good to see a sample income statement with something similar.

 

[jordanshl]

It is actually included on the EBIT line and the net profit line. Look at Serco’s annual reports for a classic example.
NB the % share of NI is added to the EBIT line of the parent, the taxation below relates only to Serco’s operating income

 

[sachin_patel]

jordanshl wrote:
It is actually included on the EBIT line and the net profit line. Look at Serco’s annual reports for a classic example.
NB the % share of NI is added to the EBIT line of the parent, the taxation below relates only to Serco’s operating income

where are you looking?

 

[Would You Look]

sachin_patel wrote:
Forget EBIT, its below net income.. (thanks to “Would You Look”)

No… I reworded my statement to explain that it is below taxable income on the parent’s income statement. This is an after-tax income item.

 

[sachin_patel]

Would You Look at That wrote:

sachin_patel wrote:
Forget EBIT, its below net income.. (thanks to “Would You Look”)

No… I reworded my statement to explain that it is below taxable income on the parent’s income statement. This is an after-tax income item.

Ok got it.. I think you just reworded to make me understand..
atleast now I am clear that its part of net income but not taxed.
I’d love to see a sample income statement that would make it much clear.