Wrt to Ques no 4 and the answer of the same, they have mentioned that “removing effect of incpme reported under equity method would decrease the income and the equity asset”
But in the equity method we do not take the assets of the firm, then why does the answer mention that removing the effect would decrease the addtional asset and resultantly mentions an increase in Asset turnover ratio, how does it affect the ratio.
Please explain the answer and the treatment of the equity method.
Thanks.
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