33 With majorityholdings, this willhappen indirectly.Full
consolidationwillinitiallycount 100 percentoftheearnings
ofthesubsidiary in theparentcompany’searningsbut the
portion of these earnings that are attributable to minority
stockholdersinthesubsidiarywillbesubtractedtoarriveat
the net income of the parent company.
34 Theequitymethodandfullconsolidationaresimilartothe
approaches used with cross holdings. In proportional
consolidation,thefirmsinvolvedinthejointventurehaveto
consolidate the proportion of the joint venture revenues,
operatingexpenses,andoperationincomethatisattributable
to them. In the balance sheet,they have to report on the
proportion of the joint venture assets and liabilities that
belong to them.