What is the impact on the noncontrolling interest of a subsidiary when there are downstream transfers of inventory between the parent and subsidiary companies?

Noncontrolling Interest

The portion of equity interest in a subsidiary not held by the parent company.

Downstream Transfers

Transactions involving the transfer of goods or services from a parent company to a subsidiary or among subsidiaries.

Parent and Subsidiary

Describes the relationship between a controlling company (parent) and a controlled company (subsidiary), often through ownership of a significant portion of shares.