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Noncontrolling interest as equity

Noncontrolling interest as equity - guidance Noncontrolling...

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The reason it should be reported as equity is to help comparability among financial statements and reduce differences between financial statements. Non-controlling interest should be reported as equity because according ARB 51, a statement issued by FASB, clarifies that noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Before this statement was issued, there was limited
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Unformatted text preview: guidance. Noncontrolling interest was usually reported as liabilities or in the mezzanine section between liabilities and equity. Although some companies used to show noncontrolling interest as a liability is does not meet the definition of a liability. Non-controlling interests in subsidiaries should be presented within equity on the consolidated balance sheet, separate from the parent shareholders’ equity....
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