Consolidation : And How to Do it

The basic concept of the equity method is basically looking at the investment of the Parent Company to the Subsidiary as an equity participation so that if the net assets of the Subsidiary Companies change because of their operational activities, will automatically cause changes in the investment value of the parent Company.Recording data investment shares in Subsidiaries with method equity, based on presumption something investments in Subsidiaries are equal and equal with investing in companies the branch. Investment value Parent Company to the Company will increase if the Subsidiary obtains profit clean and will decrease or decrease disability, if the Subsidiary suffers loss