Hi
According to my understanding, using equity method in BPC can achieve the following:
"say Company A pays $1 million for a 30 percent stake in Company B. After the sale, Company A simply reports the investment on the balance sheet as an asset with a value equal to the purchase price: $1 million. When Company B reports its net income, Company A reports revenue equal to its share of those profits. If B had $100,000 in profit, A would report revenue of $30,000. It then increases the value of the asset by $30,000, and it records the $30,000 in revenue as an increase in retained earnings."
Then what does "equity pick up" in SAP do different than the above? Could you please help explain? many thanks.