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Negative minority interest

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)

20 November 2013

Friends

Can minority interest be negative while consolidation if the subsidiary is incurring losses.

Thanks,

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2 Replies

Narayanan (exec) (242 Points)
Replied 20 November 2013

No. The holding company will absorb the loss. Later when there is profit, share of minority interest will be adjusted first against the loss previously absorbed by the holding company.

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AEC.com Private Limited (Guide of Professional Courses (CS / CA / CMA / CAT)) (233 Points)
Replied 22 May 2017

Yes Minority Interest can be negative or zero. Say if the subsidiary company of a parent company is going into loss, so when the consolidated Profit and Loss account will be made, Minority Interest will take as negative. For the same reason it can be zero and it is also be zero, if parent company acquired the all equity shares of subsidiary company.