Question

explain non controlling interest and give me example

explain non controlling interest and give me example

Homework Answers

Answer #1

Non controlling interest is also known as Minority interest. It is the portion of the equity ownership not attributable to the parent company. Non controlling interest refers to the ownership position wherein a shareholder holds less than 50% of the shares of the company or has no or little control over the decisions of the company.

Example of Non controlling interest:

Suppose, Google acquires 40 million shares or 80% shares of Microsoft for $ 1000.

In the above case, Google is the Parent company, which has controlling interest in Microsoft. As it holds more than 50% of the outstanding shares of Microsoft.

And the stockholders holding balance 20% of the shares of Microsoft would be Non controlling interest or Minority interest. As the stockholding is less than 50% of the outstanding shares. Hence, they would be referred as Non controlling interest.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Per Controlling and Non-controlling interest shares, explain why would a corporation choose one over the other?
Per Controlling and Non-controlling interest shares, explain why would a corporation choose one over the other?
what the types of non controlling interest with explen
what the types of non controlling interest with explen
A minority investment or a minority interest refers to the non-controlling share in a company held...
A minority investment or a minority interest refers to the non-controlling share in a company held by an investor or another company. For example, a private equity firm may have a non-controlling share in a company. The minority investment is usually less than 50% of the total outstanding shares of the company. The minority investment can be either minority passive interest or minority active interest. How are the minority investments are reported under IFRS and US GAAP?
What will be the impact on Goodwill, Non-controlling interest and the Group retained earnings if the...
What will be the impact on Goodwill, Non-controlling interest and the Group retained earnings if the non-controlling interest was measured as the proportionate of the identifiable net assets
Give me a reason on why scheduling of services is difficult? Give me an example of...
Give me a reason on why scheduling of services is difficult? Give me an example of the scheduling of services
Give an example of a public good that you personally value. Explain how it is non-rival...
Give an example of a public good that you personally value. Explain how it is non-rival and comment on the degree to which it is non-rival. Explain how it is non-excludable and comment on the degree to which it is non-excludable. (125 word limit)
2. Give me an example of a repeated measures design, make sure you explain well too.
2. Give me an example of a repeated measures design, make sure you explain well too.
this is for health class please give me a new example. Give an example of a...
this is for health class please give me a new example. Give an example of a measure that would benefit public health but that might be expensive to implement. •Who would benefit? •Who would pay the cost?
Non-controlling interest (NCI) is the ownership interest of those shareholders who hold shares in a subsidiary...
Non-controlling interest (NCI) is the ownership interest of those shareholders who hold shares in a subsidiary that are not owned by the immediate parent or the other group members. Discuss the implication of reporting NCI as a separate item of owner’s equity.
IFRS 3 Business Combinations allows for a policy choice when valuing and measuring the Non-Controlling Interest...
IFRS 3 Business Combinations allows for a policy choice when valuing and measuring the Non-Controlling Interest on Consolidation. Name the two (2) choices available and explain how IAS 8: Changes in Accounting Policies affects the choice of an option.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT