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Non Controlling Interest

Non-controlling interest (NCI) refers to the equity portion of a subsidiary not owned by the parent company, reported separately in consolidated financial statements. It involves measuring NCI at acquisition, allocating subsidiary net income or loss, and adjusting for ownership percentage changes. NCI ensures accurate representation of minority shareholders' interests in the financial statements.

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22 views

Non Controlling Interest

Non-controlling interest (NCI) refers to the equity portion of a subsidiary not owned by the parent company, reported separately in consolidated financial statements. It involves measuring NCI at acquisition, allocating subsidiary net income or loss, and adjusting for ownership percentage changes. NCI ensures accurate representation of minority shareholders' interests in the financial statements.

Uploaded by

shujjameer11
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Non-Controlling Interest

Non-controlling interest (NCI) represents the portion of a subsidiary's equity that is not
owned by the parent company. It is reported as a separate line item in the equity section of
the consolidated balance sheet and income statement. Key aspects include:
- Measurement of NCI at acquisition, either at fair value or proportionate share of net assets.
- Allocation of subsidiary net income or loss to NCI.
- Adjustments for changes in ownership percentage.
NCI ensures that the interests of minority shareholders in the subsidiary are accurately
represented in the consolidated financial statements.

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