Noncontrolling interest appears in the financial statements of: the parent company and the consolidated financial statements...

Noncontrolling interest appears in the financial statements of:

the parent company and the consolidated financial statements

the consolidated financial statements only

the subsidiary company and the consolidated financial statements

the parent company only

Solutions

Expert Solution

Answer :

Non Controlling Interest is the ownership position of investors in subsidiary company other than the Parent Company. The amount of Non Controlling Interest in subsidiary company is not owned by Parent Company.

The amount of Non controlling interest appears in the consolidated financial statements in the shareholders' equity section separate from the equity attributable to parent company.

In above question :

First option says that Non controlling interest appears in the financial statements of the parent company and the consolidated financial statements which is wrong because Non controlling interest appears in consolidated financial statements only.

Second option says that Non controlling interest appears in the the consolidated financial statements only which is correct.

Third option says that Non controlling interest appears in the financial statements of the subsidiary company and the consolidated financial statements which is also wrong because Non controlling interest appears in consolidated financial statements only.

Fourth Option says that Non controlling interest appears in the financial statements of the parent company only which is also wrong because Non controlling interest appears in consolidated financial statements only.

So, Correct Option is :

Second option, Non controlling interest appears in the the consolidated financial statements only.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Preparing a consolidated income statement—Equity method with noncontrolling interest and AAP A parent company purchased a...

Preparing a consolidated income statement—Equity method with noncontrolling interest and AAP A parent company purchased a 65% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $750,000 in excess of the subsidiary’s Stockholders’ Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $450,000 and to an unrecorded patent valued at $300,000. The building asset is being depreciated over a 20-year...

Preparing a consolidated income statement—Cost method with noncontrolling interest and AAP A parent company purchased a...

Preparing a consolidated income statement—Cost method with noncontrolling interest and AAP A parent company purchased a 90% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $280,000 in excess of the subsidiary’s Stockholders’ Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $200,000 and to an unrecorded Customer List valued at $80,000. The building asset is being depreciated over a...

What is noncontrolling interest? How is it classified on the balance sheet of a parent company?...

What is noncontrolling interest? How is it classified on the balance sheet of a parent company? Locate a company that has consolidated financial statements, and discuss the noncontrolling interest of that company.

How can you identify and summarize the noncontrolling interests accounting in the consolidated financial statements.

What is parent company, subsidiary, non controlling interest in consolidated?

Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany profits A...

Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany profits A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i.e., purchased at book value). Each reports the following income statement for the current year. Parent Subsidiary Income statement: Sales $7,500,000 $1,125,000 Cost of goods sold (5,250,000) (675,000) Gross profit 2,250,000 450,000 Income (loss) from subsidiary 126,000 0 Operating expenses (1,425,000) (292,500) Net income $951,000 $157,500 a. Compute the...

c. Compute the income that should be assigned to the noncontrolling interest in the 20X7 consolidated...

c. Compute the income that should be assigned to the noncontrolling interest in the 20X7 consolidated income statement. (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.) Income to noncontrolling interest Stargell's 20X7 net income * Income to noncontrolling interest Net income calculations * Net income On December 31, 20X7, trial balances for Posey and Stargell appeared as follows: Posey Manufacturing Stargell Corporation Item Debit Credit Debit Cash $49,500 $39,000 Current Receivables 121,500 90,100 Inventory...

"Noncontrolling interest": is a component of the parent company's net income and reported on the income...

"Noncontrolling interest": is a component of the parent company's net income and reported on the income statement. is a component of stockholders' equity attributable to the parent company and reported on the balance sheet. is the portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company, and reported on the balance sheet within equity, but separate from the parent company's equity. is not reported within the parent company's consolidated financial statements, but instead reported within...

what constitutes "consolidated financial statements. Explain the meaning of consolidated financial statements. the definition of consolidated...

what constitutes "consolidated financial statements. Explain the meaning of consolidated financial statements. the definition of consolidated financial statements from the FASB's Master Glossary. outline the year-end steps to comply with the new FASB statements.

The following note appears in the financial statements of a company: “The financial statements have been...

The following note appears in the financial statements of a company: “The financial statements have been prepared on the historical cost basis, except for the measurement of certain financial instruments at fair value, and incorporate the principal accounting policies set out below” Please discuss in your own words your understanding of this statement in full. Provide examples to support your discussion.

Subjects