What is Minority interest/ Non controlling interest ?

Question

Accepted Answer

Minority interest/ Non controlling interest refers to the ownership of less than 50% of a company's shares by an investor or group.

It is also known as non-controlling interest (NCI) or minority equity.
NCI is reported on the balance sheet as a separate line item.
It represents the portion of a subsidiary's net assets that are not owned by the parent company.
NCI is entitled to a share of the subsidiary's profits and losses.
Example: If Company A owns 80% of Company B, then Company A has a controlling interest and Company B has a non-controlling interest of 20%.
NCI is important for financial analysis and valuation of a company.

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