Minority interest.....

Suppose a Parent Co. holds the 70% of Share Capital in its subsidiery. it means other share holders hold 30%.

Minority Interest is Interest / holding of Minority Shareholders in the subsidiery comapny. in the above case 30% of Net worth of Co. shall be the Minority Interest.

Yeah U r corrct....

but this interest comes in the consolidated BS of parent company....then what is the concept behind it...??

this is not the parent company's share then y it comes in consol???

actually we apply full consolidation method..as a result of that all assets and liabilities is added fully and if you didnt show the minority interest then how your balance sheet got tally..

thats y we show it in balance sheet of parent co.

Oooohhh Yes...

Y I didnt think that way???

ok...Thanks...to u...

Minority interest is the net assets of minority shareholders of the subsidiary company which is not owned by the parent company but is controlled by the parent company.

The parent company controls the net assets of minorty shareholders that is why it is shown in the consolidated balance sheet of parent company. It is also known as Non Controlling Interest.

ok....Thanks Amit....