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Can minority interest be negative while consolidation if the subsidiary is incurring losses.
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Negative minority interest
Replies (2)
No. The holding company will absorb the loss. Later when there is profit, share of minority interest will be adjusted first against the loss previously absorbed by the holding company.
Yes Minority Interest can be negative or zero. Say if the subsidiary company of a parent company is going into loss, so when the consolidated Profit and Loss account will be made, Minority Interest will take as negative. For the same reason it can be zero and it is also be zero, if parent company acquired the all equity shares of subsidiary company.
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