Preference Shares

No, nci in equity is simply their long-term financing. If nci DO IN FACT own any of the preference shares in a subsid, their share will be shown as the value remaining after cancellation of the parent’s holding in the subsid prefs. the treatment is similar to where the parent has invested in a subsid loan note, but has not taken 100% of the loan note. You would cancel the parent’s holding against the relevant subsid long-term debt ( the loan note ) and the amount remaining after cancellation is shown as the remaining debt to outsiders. In the equity section for nci, it’s only their “equity” element which is shown – the amount remaining as a residual interest in the subsid’s activities