Minority Interest
What is Minority Interest?
Minority Interest represents the prorated share of minority shareholders from net assets or equity of partly owned subsidiaries of a company. Minority interest is the effect of fully consolidating partly owned subsidiaries and signifies the claim of other investors to its net assets.
What does Minority Interest include?
Minority Interest includes:
- Dividends in arrears on a subsidiary's preferred stock, not owned by a parent company;
- Minority Interest/Non-Controlling Interest, even when reported in the asset side of a Balance Sheet;
- Minority Interest share in capital and reserves;
- Minority Interest share in profits/losses of the current year (when reported on a Balance Sheet);
- Preferred shares of a subsidiary company not owned by a parent company (minority owned), or when a parent company is not responsible for paying dividends on these shares; and
- General partner interests (units).
