Back to Accounting questions

What is minority interest (non-controlling interest) and how is it treated?

Answer

Minority interest (NCI) arises when a parent consolidates a subsidiary it owns more than 50% but less than 100% of. The parent reports 100% of the subsidiary's revenue, expenses, and assets, then subtracts out the portion belonging to minority shareholders.

Continue reading the full answer

Plus the detailed banker explanation of what interviewers are really testing.

minority interestconsolidation