Asked by deegii boogii on May 26, 2024
Verified
When presenting a consolidated statement of financial position the non-controlling interest is:
A) presented as a separate component of total assets and total liabilities.
B) presented separately within the non-current liability section.
C) presented separately within the equity section.
D) shown as a separate portion of net assets.
Non-controlling Interest
The portion of equity interest in a subsidiary not attributable, directly or indirectly, to the parent company.
Financial Position
A statement or status of an entity’s resources, liabilities, and equity at a particular point in time, illustrating its economic standing.
Equity Section
The section of a company's balance sheet that represents the residual interest in the assets of the entity after deducting liabilities, including items such as share capital, retained earnings, and reserves.
- Clarify how non-controlling interests within equity are treated in consolidated financial statements from an accounting perspective.
Verified Answer
MK
Muhammad KuliyaMay 27, 2024
Final Answer :
C
Explanation :
The non-controlling interest represents the portion of the subsidiary's equity that is not owned by the parent company, and is therefore presented as a separate component within the equity section of the consolidated statement of financial position.
Learning Objectives
- Clarify how non-controlling interests within equity are treated in consolidated financial statements from an accounting perspective.