The equity method is in many ways a partial consolidation.

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The equity method is used to account for investments in which the investor has significant influence over the investee, but does not have control. Under the equity method, the investor records its share of the investee's earnings or losses on its income statement. This is similar to consolidation, where the financial statements of the parent and its subsidiaries are combined as if they were a single entity. However, under the equity method, only the investor's share of the investee's earnings or losses is included in the investor's financial statements, whereas in consolidation, the entire subsidiary's financial statements are included in the parent's financial statements. Therefore, the equity method can be seen as a partial consolidation.

The Equity Method Is in Many Ways a Partial Consolidation