Calculating the minority interest (MI) in the operating profit and opening retained earnings of a subsidiary is done by:
A) Taking the operating profit and opening retained earnings figures of the subsidiary and multiplying them by the percentage ownership held by the MI.
B) Adjusting the operating profit and opening retained earnings of the subsidiary for any intragroup transactions and multiplying them by the percentage ownership held by the MI.
C) Adjusting the operating profit of the subsidiary for any unrealised profit or expense of the subsidiary as a result of any intragroup transactions and multiplying both this and the opening retained earnings by the percentage ownership held by the MI.
D) Adjusting the opening retained earnings and the operating profit for any unrealised profit or expense of the subsidiary as a result of intragroup transactions and multiplying this by the percentage ownership held by the MI.
E) None of the given answers.
Correct Answer:
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