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What is the difference between wholly owned and less than wholly owned control, and what is...

What is the difference between wholly owned and less than wholly owned control, and what is the effect of it on the consolidated balance sheet?

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Answer #1

There is a very simple difference exist between wholly owned control and less than wholly owned control. A wholly owned control exist where a company (Holding) owned 100% equity shares/common stock of another company (Subsidiary).

Less than wholly owned control exist where the holding company holds less than 100% equity shares of the subsidiary.

Effect On Balance sheet

In case of wholly owned control, there is not minority interest appears in the liability side of the company.

While in the case of partly owned, minority interest shown in the liability side of the balance sheet.

Minority interest is Assets owned but not controlled by by the company.

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