Two P&L Statement Questions
Under EBIT we have the following line items to get to taxable income:
Interest Income / (Expense) *Equity Income / (Expense) **minority interest Other Income / (Expense)
- What does Equity Income / (Expense) represent? If the answer is "dividends" or the "inflow/outflow of share offerings and share buybacks", isn't this an item that comes after Net Income and something that normally appears in the Cash Flow from Financing Activities on a cash flow statement?
** Suppose a parent company with a 51% ownership stake in a subsidiary shows negative earnings. Would Minority Interest on the parent company's consolidated P&L then be considered an inflow?
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