Vincent or Jason,

Regarding Accounting for Investments, I am going to assume subsidiary = significant influence in company ( 50%), leading to consolidated financial statements; Therefore, a major part of the operating activities of the firm ( I mean that both on a numbers basis and in intrinsically speaking).

However, Investment in Associate ( non-core/non-operating income), is accounted either by the Cost Method or Equity Method.

Cost Method ( dividend income) Equity Method ( receive % income)....When doing comparable company analysis of firms in same industry, I always wondered whether I should deduct for exampel the equity method income out of net income.....as an adjustment to Net Income....same way you would adjust for a non-recurring gain on sale asset / expense......

I understand it is recurring and it is ultimately income attributable to shareholders, but I find it "possibly" inappropriate to compare 1 company to others in same industry that do not have investments in associates? Any thoughts?

However, for multiples such as Equity Value / Net Income....equity value comes from share price , which investors have determined is fair based on all income attributable to shareholders , which includes these associate investments..Therefore, would that make my entire idea inappropriate.