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In Reading a Set of Consolidated Financial Statements You Are

Question 30

Essay

In reading a set of consolidated financial statements you are surprised to see the term noncontrolling interest not reported under the Stockholders' Equity section of the Balance Sheet.
a.What is a non-controlling interest?
b.Why must it be reported in the financial statements as an element of equity rather than a liability?

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a.Noncontrolling interest occurs when le...

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