Bring-It-On
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- Jun 18, 2026
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I’m reading Intercorporate Investments from the 2014 CFAI book. The material does NOT mention “Proportionate Consolidation” anywhere in the text, however, one of the EOC questions is based on Proportionate Consolidation.
The text says that we should use the Equity Method for any situation where there is “significant influence” (and no control). It further specifies that investments in Associates and Joint Ventures should be accounted for using the Equity Method.
The EOC question however is asking us to use the Proportionate Consolidation method for Joint Ventures. Is Proportionate Consolidation in our curriculum for 2014?
Thanks!
The text says that we should use the Equity Method for any situation where there is “significant influence” (and no control). It further specifies that investments in Associates and Joint Ventures should be accounted for using the Equity Method.
The EOC question however is asking us to use the Proportionate Consolidation method for Joint Ventures. Is Proportionate Consolidation in our curriculum for 2014?
Thanks!