Asked by Maggie Nicole on Jun 14, 2024
Verified
Under the entity concept of consolidation,the NCI is recognised as a liability.
Entity Concept
An accounting principle that treats a business as a separate entity from its owners for financial reporting purposes.
NCI
Non-Controlling Interest, which refers to the ownership in a subsidiary not held by the parent company, represented in the equity section of the consolidated financial statements.
Liability
A financial obligation or debt owed by an individual or entity to another party that has to be paid back in the future.
- Master the idea of non-controlling interest (NCI) and its expression in consolidated financial statements.
Verified Answer
KJ
kadeem josephJun 14, 2024
Final Answer :
False
Explanation :
Under the entity concept of consolidation, the Non-Controlling Interest (NCI) is recognized as equity, not as a liability. It represents the portion of the equity in a subsidiary not attributable to the parent company.
Learning Objectives
- Master the idea of non-controlling interest (NCI) and its expression in consolidated financial statements.