Minority interest-group accounts, Financial Accounting

Assignment Help:

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.


Related Discussions:- Minority interest-group accounts

Maturity risk premium , The real risk-free rate is 2%. Inflation is expecte...

The real risk-free rate is 2%. Inflation is expected to be 2% this year and 5% during the next 2 years. Suppose that the maturity risk premium is zero. What is the yield on 2-ye

Property transferred before bankruptcy, PROPERTY TRANSFERRED BEFORE BANKRUP...

PROPERTY TRANSFERRED BEFORE BANKRUPTCY (a) Voluntary settlements : The trustee can claim all property settled by the bankrupt on other persons within two years preceding the

Prepare a classified balance sheet, Rehab Health Co. offers personal weight...

Rehab Health Co. offers personal weight reduction consulting services to individuals. On June 30, 2010, the balances of selected accounts of Rehab Health Co. are as follows: Acc

Account receivable, what is the treatment of increase in allowance receivab...

what is the treatment of increase in allowance receivable.

Abbreviated cash budget, I need to know how to do a problem and whether I ...

I need to know how to do a problem and whether I am missing information.

Pv ratio, assignment ofr p V RATIO ANALYSIS

assignment ofr p V RATIO ANALYSIS

AFM, I need help with assignment completeion

I need help with assignment completeion

Ias 1, Dillings Ltd is a wholesaler and distributor of catering of office e...

Dillings Ltd is a wholesaler and distributor of catering of office equipment. The following list of balances was extracted from its books at 31 March 2004: 1428_Prepare the Income

Explain briefly the role of computers in accounting, Q. Explain briefly the...

Q. Explain briefly the role of computers in accounting? Computers can be used as accounting machines and perform all the functions which accounting machines perform. Some of th

Static balancing-dynamic balancing-field balancing, Static Balancing : Th...

Static Balancing : This balancing is complete in the plane of unbalance. Dynamic Balancing : In this case two balance planes are needed because forces along couples are to

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd