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Negative minority interest

CA UMESH PRASAD (DGM - Accounts & Finance) (26 Points)

28 September 2018

Dear Experts,

Please guide how to present negative Minority Interest in Consolidated Financial Statement as per AS 21. Subsidiary is having negative Net Assets.

Also if subsidiary is having negative net assets and loss in current year ,then in such case do we need to add back the minority interest loss in the consolidated Profit & Loss A/c.

Waiting for your replies.

Thanks in Advance

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2 Replies

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 28 September 2018

If the minority interest is Negative, such losses have to be borne by the Parent Company as per AS 21. In no case minority interest will be shown in Assets side of the Balance Sheet

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CA UMESH PRASAD (DGM - Accounts & Finance) (26 Points)
Replied 08 October 2018

Thanks Ankit,

can you also guide if in current year subsidiary is having profit after eliminating intercompany transactions, then do we need to show minority profit in consolidated profit & loss eventhough there is accumulated losses pertaining to subsidiary of previous years.

Thanks in Advance