Answer Posted / prasanna
Minority interest in business is an accounting concept that
refers to ownership of a company (subsidiary) that is less
than 50% of outstanding shares.[1] Minority interest
belongs to other investors and is reported on the
consolidated balance sheet of the owning company between
liabilities and equity sections 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.
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