Which of the following factors does NOT influence equity income from associates?

Equity income from associates is primarily influenced by several key factors that are inherently connected to the investment and performance of the associate. Among these factors, the ownership percentage in the associate, fair value differential amortization, and unrealized intercompany profits are all critical components that directly affect how equity income is recognized.

The ownership percentage in the associate is vital because it determines the extent of the investor’s share in the net income recognized. Similarly, fair value differential amortization comes into play when fair value adjustments arise from the acquisition of the associate. The amortization of these fair value differentials will impact the equity income reported. Unrealized intercompany profits also have a significant effect, as they need to be eliminated from the equity income calculations to avoid double counting the profits that remain within the consolidated group.

In contrast, the current year's net operating income of the associate does not directly impact the measurement of equity income as it is reported by the investor. While the net operating income is relevant for assessing the associate’s performance, equity income is recognized based on the investor's proportionate share of the associate’s profits, taking into account the previously mentioned factors. Therefore, the current year's net operating income, by itself, does not directly influence the equity income reported by the investor