Is minority interest a liability or equity?

Question

1.31K viewsAccounting

0

Mancuso 0 Comments

Is the minority interest or the non controlling interest a liability or is it included in the equity section?

1 Answer

score 0 · Answer 1 · 2012-12-02T22:15:43+00:00

Minority Interest or the non controlling interest is a non current liability. Its is not equity as the company does not have access to these resources. Its essentially the share of the assets (capital contribution plus the retained earnings) of the subsidiaries that you have consolidated that should not have been included as you don’t own them or have access to them.