Minority interest-group accounts, Financial Accounting

Minority interest (MI)

When the holding company owns less than 100% of the ordinary share capital of the subsidiary company then the other balance is held by minority interest. Therefore if the holding company owns 80% of the ordinary share capital of the subsidiary then the minority interest owns 20%. The minority interest (M.I) should be shown separately in the consolidated balance sheet but as part of shareholders funds and the figure to appear in the balance sheet will be made up of the following.

-Minority interest share of the ordinary share capital in subsidiary on balance sheet date
-Minority   interest share of capital reserves in subsidiary company on balance sheet date
-Minority interest share of revenue (retained profits) in subsidiary company on balance sheet date.

Alternatively, the total due to the minority interest can be prepared by opening the Minority Interest account whereby the Minority interest’s share of the osc, capital reserves and retained profits in subsidiary company is posted to the credit side.

Posted Date: 12/12/2012 2:31:08 AM | Location : United States







Related Discussions:- Minority interest-group accounts, Assignment Help, Ask Question on Minority interest-group accounts, Get Answer, Expert's Help, Minority interest-group accounts Discussions

Write discussion on Minority interest-group accounts
Your posts are moderated
Related Questions
What organizations are responsible for governing financial reporting? What is the role of each organization? How have the roles changed in the last 20 years? How might their roles

KAM Computer Timeshare Company entered into the following transactions durnig May 2014 Decribe the effects of each transaction on assets, liabilities, and owner's equity. 1. Purcha

For this question you will use the dataset "murder.xls", which includes: • rate = Murder rate per 100,000 • convictions = Number of convictions divided by number of murders • execu

Permanent accounts would not include a interest expense b wage payable c prepaid rent d unearned revenues

PROTECTION AGAINST CLAIMS The trustees may protect themselves against claims after discharge in the following ways:   1. As regards liability for rent and other obligations und

Q. Report on the management of foreign trade risks? Your company is probable to face three types of risk in connection with its foreign trade. These are as: (1) Foreign exch

Zoum Corporation had the following transactions during 2014: 1. Issued $125,000 of par value common stock for cash. 2. Recorded and paid wages expense of $60,000. 3. Acquired land

Content of accounts Periodical accounts should normally consist of:         1.    Balance sheet of the whole trust;         2.    Capital account;         3.    Income account

No.         Account Title                                                                                     Debit                     Credit 101         Cash . . . . .

Q. Responding to various stakeholder groups? If a company has a solitary objective in terms of maximising profitability then it is only responding to one stakeholder group name