Controlling vs Non-Controlling Interest

Controlling vs Non-Controlling Interest

In this video, Saket defines and compares the terms controlling and non-controlling interest, and discusses under which circumstances they may arise.
Overview

In the financial statements, we often see references to “Group” Income Statement or a “Group” Balance Sheet. A “Group” means that the financial statements comprise of more than one entity and these are often referred to as consolidated financial statements. Controlling and non-controlling interest are different groups of investors. Non-controlling interest arises when one or more subsidiary companies are not fully owned by the parent company. The net income for the period, and the equity is split between controlling and non-controlling interest.

Key learning objectives:

  • What is controlling interest?

  • What is non-controlling interest?

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Summary
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Expert
Saket Modi

Saket Modi

Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.

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