Hello everyone...
Plz make me understand about MINORITY INTEREST...
What is Minority Interest?
How to calculate it?
Whats the concept of it?
6 Replies
CA Prateek Garg
(CA in Practice)
(1447 Points)
Replied 30 March 2013
Suppose a Parent Co. holds the 70% of Share Capital in its subsidiery. it means other share holders hold 30%.
Minority Interest is Interest / holding of Minority Shareholders in the subsidiery comapny. in the above case 30% of Net worth of Co. shall be the Minority Interest.
Vaibhav Pitliya
(Student CA Final )
(71 Points)
Replied 04 April 2013
Yeah U r corrct....
but this interest comes in the consolidated BS of parent company....then what is the concept behind it...??
this is not the parent company's share then y it comes in consol???
Vaibhav Pitliya
(Student CA Final )
(71 Points)
Replied 04 April 2013
Oooohhh Yes...
Y I didnt think that way???
ok...Thanks...to u...
Amit Kumar Verma
(CA Final CS Professional)
(501 Points)
Replied 04 April 2013
Minority interest is the net assets of minority shareholders of the subsidiary company which is not owned by the parent company but is controlled by the parent company.
The parent company controls the net assets of minorty shareholders that is why it is shown in the consolidated balance sheet of parent company. It is also known as Non Controlling Interest.
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