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Sir I hope you all will be fine. I am too much confused in non controlling interest. My question is
Why parent company show NCI in own SOFP? although it’s not relate to parent company. What is the logic to do this?
Thank youHi,
I’m well thanks.
We show control through consolidating the assets and liabilities of the subsidiary in full, however we don not own 100% of them as the NCI own their share. The equity section of the SFP shows ownership, and so it is in here that we show the amount of the assets and liabilities that the NCI own.
This is all fundamental to the understanding of group accounts, and if you are struggling with it then you will need to go back to either FA or FR to fully understand the principles.
Thanks
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