If a company prepares a consolidated income statement, IFRS requires that net income be reported for:
A) the controlling interest only.
B) the noncontrolling interest only.
C) both the controlling and the noncontrolling interest.
D) as a single amount only.

Question

Quizplus · Accepted Answer

IFRS requires that a consolidated income statement should report the net income of both the controlling and non-controlling interests separately. This is done to provide a clear understanding of the performance of the company as a whole and the performance of the non-controlling interest or minority shareholders. Therefore, Option C, both the controlling and non-controlling interests, is the correct choice.

If a Company Prepares a Consolidated Income Statement, IFRS Requires