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Negative minority interest

AS 798 views 2 replies

CA UMESH PRASAD

DGM - Accounts & Finance

26 Points Joined July 2009

Dear Experts,

Please guide how to present negative Minority Interest in Consolidated Financial Statement as per AS 21. Subsidiary is having negative Net Assets.

Also if subsidiary is having negative net assets and loss in current year ,then in such case do we need to add back the minority interest loss in the consolidated Profit & Loss A/c.

Waiting for your replies.

Thanks in Advance

Replies (2)

CA Ankit R Momaya

Partner at Bhat Momaya & Associates

2319 Points Joined November 2016

If the minority interest is Negative, such losses have to be borne by the Parent Company as per AS 21. In no case minority interest will be shown in Assets side of the Balance Sheet

CA UMESH PRASAD

DGM - Accounts & Finance

26 Points Joined July 2009

Thanks Ankit,

can you also guide if in current year subsidiary is having profit after eliminating intercompany transactions, then do we need to show minority profit in consolidated profit & loss eventhough there is accumulated losses pertaining to subsidiary of previous years.

Thanks in Advance