A non-controlling interest is entitled to a share of which of the following items?
I. Equity of the group entity at acquisition date.
II. Equity of the subsidiary at acquisition date.
III. Current period profit or loss of the subsidiary entity.
IV. Changes in equity of the subsidiary since acquisition date and the beginning of the current financial period.
A) III only.
B) I, II and III.
C) I and II only.
D) II, III and IV only.

Question

Quizplus · Accepted Answer

A non-controlling interest is entitled to a share of the subsidiary's current period profit or loss (III) and changes in equity of the subsidiary since acquisition date and the beginning of the current financial period (IV). They are not entitled to a share of the equity of the group entity at acquisition date (I) or the equity of the subsidiary at acquisition date (II), as these belong to the controlling interest. Therefore, choices B and C can be eliminated. Choice D includes only the items that a non-controlling interest is entitled to a share of, making it the correct answer.

A Non-Controlling Interest Is Entitled to a Share of Which