Equity method

Associated companies, in which a fully consolidated Group company holds between 20 and 50 percent of the voting rights, are accounted for in the consolidated financial statements by using the equity method. This means an associated company is carried in the consolidated financial statements at an amount proportionate to the Group´s share in its equity. Similarly, a proportionate share of the associate´s earnings is included in the Consolidated Statement of Earnings, under net income from participating interests. The use of consistent valuation principles throughout the Group also applies to equity-accounted companies.