Question

what the types of non controlling interest with explen

Answer 1

Non controlling Interest- This is a minority interest that is less than 50% in any corporation.

It is the ownership stake in the company that is less than 50% and that does not give any influence to shareholders.

Types of Non controlling Interest- Two types:

(1): Direct NCI- It receives a proportionate shares of all the equity balances recorded by the subsidiary, these equity balances have both pre acquisition and post acquisition amount.

(2): Indirect NCI- It receives a proportionate share of a subsidiary's post acquisition equity.