Proportionate Consolidation Definition

Below please find a definition of “Proportionate Consolidation”

Financial Analysis Training & Glossary TermsProportionate Consolidation: The method followed for consolidating the accounts of joint ventures is termed as proportionate consolidation. Proportionate consolidation is often known as proportionate accounting. Proportional consolidation requires that items of income, assets and liabilities are included in the balance sheet in proportion to the percentage of participation by the firm in the venture.

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