The noncontrolling interest in a subsidiary is reported in the consolidated balance sheet
A) As an investment.
B) As a liability.
C) At fair value, as determined on the acquisition date.
D) As an element of stockholders' equity.

Question

Quizplus · Accepted Answer

The noncontrolling interest in a subsidiary is reported in the consolidated balance sheet as an element of stockholders' equity. This represents the portion of the subsidiary that is not owned by the parent company and therefore does not belong to the parent's common shareholders. It is reported as a separate line item in the consolidated balance sheet, along with the parent company's retained earnings and other items of equity.

The Noncontrolling Interest in a Subsidiary Is Reported in the Consolidated