Minority interest is shown under the head  SHARE CAPITAL in consolidated  Balance Sheet.

Dear Subra,

Minority Interest is  aliability for holding company..

Minority Interst appears as a separate item on Liabilty side after "Loans"  in the consolidated Balance sheet.

Dear Djirendra Singh,

AS -21 requies Minority Interest to be disclosed separately from companies equity & Liabilities..

Further, for Holding Company or for Consolidation purposes it is just a liability towards the shareholders of subsidary & not the "Share capital or Reserve /Surplus"

If my earlier reply causing confusion in terms of it;s presentation then I will modify it but I simply meant that it is a liability..

Thanks Dhirender, your second explanation has cleared my doubts ..

as understood by me, 'minority interest' simply represents that part of net assets of subsidiary which are not owned by holding company, but are under its control due to ownership of more than half of share capital of subsidiary.

While preparing consolidated B/S, we club the net assets of subsidiary with holding at their full 100% value, irrespective of the %age of holding (i.e. no matter we have only say 80% investment in subsidiary, we still add the 100% value of its net assets to the assets of holding co.).  To counter it, now we show the rest 20% value of net assets of subsidiary as minority interest at liability side.

We calculate the minority interest as sum total of share capital and its pre-post acquisition profits, just for sake of easy and quick calculation. Otherwise these are just the 20% net assets of subsidiary which we do not own but have control over due to significant interest in subsidiary. It can also be calculated from asset side.

Minority Interest appears below 'unsecured loan' and above 'current liabilities' in consolidated B/S.

Please correct me, if  I am wrong anywhere.

Thanks!!

Hello!

Different authors have different opinions about the presentation of minority interest in the CBS.But more appropriate method is to show Minority Interest under the head SHARE CAPITAL as it represents the amount payable to the shareholders.But it will not be wrong if its not shown under Share Capital.

minority interest is shown after loans seperately in balance sheet

HEY EVERYBODY ,

DONT GET CONFUSED !!!!!!!!!!!

ITS ALWAYS SHOWN AFTER UNSECURED LOANS AND BEFORE CURRENT LIABILITIES , SEPARATELY IN B.SHEET.

THIS DISCLOSURE IS RECOMMENDED BY ICAI IN ACCTG STANDARDS.....

REGARDS,

MAHIKA.