Answer Posted / madhu

Minority interest in business is an accounting concept that
refers to the portion of a subsidiary corporation's stock
that is not owned by the parent corporation. The magnitude
of the minority interest in the subsidiary company is
always less than 50% of outstanding shares, else the
corporation would cease to be a subsidiary of the parent.
[1] Minority interest belongs to other investors and is
reported on the consolidated balance sheet of the owning
company to reflect the claim on assets belonging to other,
non-controlling shareholders. Also, minority interest is
reported on the consolidated income statement as a share of
profit belonging to minority shareholders.

Minority interest is an integral part of the enterprise
value of a company. The converse concept is an associate
company.

Under IFRS and US GAAP, the minority interest is reported
in the equity section of the consolidated balance sheet

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