Tuesday, November 18, 2008

Minority Interest

That part of a subsidiary company that the investing company does not itself hold, or control. If the company has an interest in 87% of the share capital of another company, then that other company is a subsidiary and 87% of its profits and assets will be featured in the consolidated accounts of the share owning company. The 13% not owned directly, will be featured in the consolidated accounts as a Minority Interest.

No comments: