Advanced Accounting
Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 4, Problem 1Q
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Explain the meaning of term non-controlling interest.

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Answer to Problem 1Q

The interest which is other than that of parent company in any entity is termed as non-controlling interest.

Explanation of Solution

Non-controlling interest:

The interest which is other than that of parent company in any entity is termed as non-controlling interest. The non-controlling interest specifies the percentage of ownership which is not owned by the parent company.

For example, if the parent company own 70% in the subsidiary then the remaining 30% is the non-controlling interest.

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