Question

On 1 Jan 2020,

What is NCI in Net Income?

Answer 1

NCI stands for Non- Controlling Interest. It is also known as Minority Interest. In a situation where a shareholder owns or holds less than 50% of shares in a Company and had no control on the Company's Decision matters.

In a Consolidated Balance Sheet, the Parent Company reports the Financial results of the Subsidiary Company to present a claim on Assets by Minority Shareholders, or in its consolidated Income Statement as a percentage of profits belonging to Minority Shareholders.

Non-Controlling Shareholders had less influence on Company's Management and Policies. Here Parent Company holds shares between 51 percent to 100 percent. For example, If a Company Z Ltd is a Parent Company and holds 80% of total shares in a Subsidiary Company A Ltd. Then Minority Interest is 20% in the Subsidary Company.