Asked by Manfred Leung on Jun 05, 2024
Verified
Company A owns 40% of Company B and this ownership is deemed to represent control.The non-controlling interest in B is:
A) 40%.
B) 60%.
C) 100%.
D) no non-controlling interest.
Non-controlling Interest
A share in the equity and earnings of a subsidiary that are not owned by the parent company, also known as minority interest.
- Grasp fully the principle of non-controlling interest (NCI) and how it is indicated in consolidated financial statements.
Verified Answer
SB
Shelbie BachaiJun 10, 2024
Final Answer :
B
Explanation :
The non-controlling interest in Company B is the percentage of ownership not held by Company A, which is 60%. Therefore, choice B is the correct answer.
Learning Objectives
- Grasp fully the principle of non-controlling interest (NCI) and how it is indicated in consolidated financial statements.
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