Non-controlling interest
Non-controlling interest is the equity in a subsidiary not attributable directly or indirectly to the parent. Calculate NCI using the relevant ownership share and the basis specified in the question. Its share of the subsidiary's profit is presented as an attribution of consolidated profit, and its interest in consolidated net assets is shown separately within equity. Its proportion can change if the parent buys or sells additional shares in the subsidiary.
Worked example
The parent acquires 80% and the 20% NCI has acquisition-date fair value of $25,000. If adjusted post-acquisition net assets increase by $10,000, closing NCI is $27,000 ($25,000 + 20% × $10,000), assuming no other movements.
Common mistake
FA goodwill calculations use acquisition-date fair-value NCI as specified in the syllabus. Consolidate 100% of subsidiary assets and liabilities, then present NCI separately within equity.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: NCI, Minority interest