In its March 31, 2017, SEC Form 20-F (i.e., the annual report for non-United-States companies listed on United States stock exchanges), Toyota Motor Corporation reports a ¥2,845,422 million balance re- related to its equity method investments in affiliated companies. According to the report, "[a]s of March 31, 2017, Toyota operated through 597 consolidated subsidiaries (including variable interest entities) and 200 affiliated companies, of which 54 companies were accounted for through the equity method." Excerpts from its footnote relating to these equity-method investments follow:

Toyota does not have any significantly related party transactions other than transactions with affiliated companies in the ordinary course of business.

a. Based on Toyota's March 31, 2017 balance sheet information, what is the average percentage ownership Toyota has in its unconsolidated equity method affiliates?

b. Based on Toyota's income statement information for the year ended March 31, 2017, what is the average percentage ownership Toyota has in its unconsolidated equity method affiliates?

c. Why do the percentages you calculated in requirements a and b differ?

d. Based on the activity information provided, reconcile Toyota's March 31, 2017 Equity investment balance to the March 31, 2016 Equity investment balance. Do the amounts reconcile? If not, what can cause the amounts to not reconcile?
 
 

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Investments in and transactions with affiliated companies Summarized financial information for affiliated companies accounted for by the equity method is shown below: Yen in millions Current assets Noncurrent assets Total assets... Current liabilities.... Long-term liabilities and noncontrolling interests. Affiliated companies accounted for by the equity method shareholders' equity..... Total liabilities and shareholders' equity. Toyota's share of affiliated companies accounted for by the equity method shareholders' equity Number of affiliated companies accounted for by the equity method at end of period.... Yen in millions Net revenues Gross profit... Net income attributable to affiliated companies accounted for by the equity method ..... 966,133 March 31, Yen in millions Trade accounts and notes receivable, and other receivables Accounts payable and other payables.... 2016 2017 11,299,674 11,795,296 10,961,889 11,003,432 22,261,563 22,798,728 .....…. 7,414,894 7,419,176 5,509,745 5,423,938 9,336,924 9,955,614 22,261,563 22,798,728 2,631,389 2,845,422 For the years ended March 31, 2015 2016 2017 30,163,457 31,037,029 30,309,263 3,614,946 3,852,889 3,644,267 54 Equity in earnings of affiliated companies attributable to Toyota Motor Corporation..... 308,545 Account balances and transactions with affiliated companies are presented below: 957,742 329,099 2016 256,700 676,415 54 1,099,080 March 31, 362,060 2017 289,406 691,173 Investments in and transactions with affiliated companies Summarized financial information for affiliated companies accounted for by the equity method is shown below: Yen in millions Current assets Noncurrent assets Total assets... Current liabilities.... Long-term liabilities and noncontrolling interests. Affiliated companies accounted for by the equity method shareholders' equity..... Total liabilities and shareholders' equity. Toyota's share of affiliated companies accounted for by the equity method shareholders' equity Number of affiliated companies accounted for by the equity method at end of period.... Yen in millions Net revenues Gross profit... Net income attributable to affiliated companies accounted for by the equity method ..... 966,133 March 31, Yen in millions Trade accounts and notes receivable, and other receivables Accounts payable and other payables.... 2016 2017 11,299,674 11,795,296 10,961,889 11,003,432 22,261,563 22,798,728 .....…. 7,414,894 7,419,176 5,509,745 5,423,938 9,336,924 9,955,614 22,261,563 22,798,728 2,631,389 2,845,422 For the years ended March 31, 2015 2016 2017 30,163,457 31,037,029 30,309,263 3,614,946 3,852,889 3,644,267 54 Equity in earnings of affiliated companies attributable to Toyota Motor Corporation..... 308,545 Account balances and transactions with affiliated companies are presented below: 957,742 329,099 2016 256,700 676,415 54 1,099,080 March 31, 362,060 2017 289,406 691,173

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