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Equity Method of Accounting: Minority Stakes on the Financial Statements

Mergers u0026 Inquisitions / Breaking Into Wall St 12 views

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What happens if dividend income received is already greater than the investment account How to account for the excess?
Comment from : @LoveStudio3388

Great content, thank you
Comment from : @jatinnawani6075

Is this included in the breaking into wallstreet course?
Comment from : @lzra8111

Hi! Thank you very much for the video My question is - why do we add the Equity Investment Earning from the Associate Company to the Net Income? Don't we need to tax the income as well - why is it exempt from the income taxes in your example? I would have intuitevly added it to the EBT, not influencing the EBITDA or EBIT, but ifluencing the Net Income
Comment from : @piterino3781

For less than 20 ownership investments with no significant influence, do you just record on the balance sheet at cost and record dividend received as debit to cash and credit to investment income on income statement?
Comment from : @fordaysafterxmas

Great Video! One quick question: Why the equity investment earnings need to be reverse sign on the CFO? If that's the part of earnings the parent Co received from sub Co?
Comment from : @ceciliazhang6788

Hi Brian, thank you for the video! It's definitely one of the best in the market I was asked by an interviewer today regarding majority investments brbr(a) And could i please kindly ask how does an increase of net income $100 and dividend payout $50 from a 70 owned subsidiary affect the 3 financials statements I understand the consolidation method would be appliedbrbrI/S:brEnding Retained Earnings increase by $70 from PATMI, dividend payout is $35, dividends received from "non-controlling interest" is $15 brbr-> So retained earnings increase by $50brbrbrCFS:br- CFO increases by $100 from PATbr- CFF decreases by $50 due to dividendsbrbr-> Net change in cash decreases by $50brbrB/S:brAssets - br- Cash increases by $50brLiabilities & Equities - br- Minority interest increased by $15 from increase in net income and after dividend payments - 30*$50br- Retained earnings increased by $50brbr-> It doesn't seem to balance on the balance sheet Should there be a $15 dividends from "non-controlling interest" here?brbr(b) For the consolidation method, is this applied to all the 3 financial statements?brbrThank you!
Comment from : @caleblim1692

Hi Brian, could you please tell me under which tutorial head in your course have you explained in a similar manner the concept of Minority Interest? This video was a life saver I have the subscription to your course comprising of Adv Modelling, Fin Modelling fundamentals and Fin modeling mastery I am in bit of a rush and sifting through the entire course to find details on the same isn't viable Please assist Thanks!
Comment from : @namankulshreshtha6042

Would you mind sharing the excel behind? Super useful video
Comment from : @Dollarideas

Why are dividends from equity investments shown under the cash flow from operating activities section on the cash flow statement?
Comment from : @njabulovhadebe9102

Can anyone please expain why realized gains and losses are reversed on the Cash flow statement It is a cash transaction and has been accounted for in the income statement-- so why is it deducted from the cash flow from operations?
Comment from : @asimpattnaik7357

Just to clarify, when you say unrealised gains and losses appear on the income statement but are reversed on the CFS, do you mean the Unrealised G's/L's on the CFS are basically the inverse sign of what appears on the IS? Thanks
Comment from : @courtney2394