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Minority interest in business is an accounting concept that refers to the portion of a subsidiary corporation's stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is always less than 50% of outstanding shares, else the corporation would cease to be a subsidiary of the parent.[1] Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owning company to reflect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is reported on the consolidated income statement as a share of profit belonging to minority shareholders.

Minority interest is an integral part of the enterprise value of a company. The converse concept is an associate company.

Under IFRS and US GAAP, the minority interest is reported in the equity section of the consolidated balance sheet.

See also

External links


  1. ^ The Minority Interest Discount


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