Question

Within the equity section of the balance sheet, any non-controlling or minority interest would be best...

Within the equity section of the balance sheet, any non-controlling or minority interest would be best described as: a) minority interests the company has in joint ventures b) minority shareholders in subsidiaries that have been consolidated c) minority shareholders that have significant influence but less than 50 percent control

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Answer #1

Answet is b) minority shareholders in subsidiaries that have been consolidated

Explanation:

Whenever any company acquires 50% or more than 50% in any company then they consolidates the books of subsidiary company with holding company. In case of consolidation, full consolidation is done as if 100% is acquired and minority shareholders have been shown in balance sheet in equity side for the percentage they hold in subsidiary company. For example, Say company H acquires 60% in Company S. Company H will prepare consolidated financial statement in such a manner that it has acquired 100 % of Company H and minority shareholders of 40% will be shown in the equity side of consolidated balance sheet.

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