It is included in total as a component of shareholders’ equity.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How is the noncontrolling interest treated in the consolidated balance sheet?

a.

It is included in long-term liabilities.

b.

It appears between the liability and equity sections of the balance sheet.

c.

It is included in total as a component of shareholders’ equity.

d.

It is included in shareholders’ equity and broken down into par, paid-in capital in excess of par and retained earnings.

Expert Solution
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Minority interest is that part of the net assets which is not owned by the parent company. It is also called a non-controlling interest (NCL). But still, 100% full consolidation has to be done because the parent company has majority control. Whenever the parent company has to take all the subsidiaries' financial statements and its own financial statement and combined them.

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