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Non-Controlling Interests in Financial Statements

In the combined financial statements of Company A and Company B, the 20% interest not held by the Parent Company in Company B will be presented as non-controlling interest in the equity section. Company B's 90% interest in Company C will result in full consolidation, with the remaining 10% reported as non-controlling interest. Thus, both non-controlling interests for Company B and Company C will be reflected in the equity section of the combined financial statements.

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Riezel Pepito
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11 views1 page

Non-Controlling Interests in Financial Statements

In the combined financial statements of Company A and Company B, the 20% interest not held by the Parent Company in Company B will be presented as non-controlling interest in the equity section. Company B's 90% interest in Company C will result in full consolidation, with the remaining 10% reported as non-controlling interest. Thus, both non-controlling interests for Company B and Company C will be reflected in the equity section of the combined financial statements.

Uploaded by

Riezel Pepito
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© All Rights Reserved
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Pepito, Riezel V.

BSA 3A
Accounting for Business Combination
Activity 3

1. How would the interest not held by Parent Company in Company B be presented in the
combined financial statements of Company A and Company B?
Parent Company owns 80% of Company B, meaning 20% is held by non-controlling interests
(NCI).
In the combined financial statements of Company A and Company B, this 20% will be presented
as non-controlling interest in the equity section.
This reflects the portion of Company B not owned by the Parent Company.
2. How would Company B's interest in Company C be presented in the combined financial
statements of Company A and B?
Company B owns 90% of Company C, so Company C will be fully consolidated into Company B's
financials.
The remaining 10% of Company C, not owned by Company B, will be reported as non-controlling
interest in the combined financial statements of Company A and B.
Summary:
Non-controlling interests (NCI) for both Company B (20%) and Company C (10%) will be reported
in the equity section in the combined financial statements.

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