The equity in a subsidiary not attributable,directly or indirectly,to a parent is defined in AASB 127 as the:
A)non- controlling interest
B)equity interest
C)subsidiary interest
D)controlling interest

Question

Quizplus · Accepted Answer

AASB 127 defines the equity in a subsidiary not attributable, directly or indirectly, to a parent as the non-controlling interest. This refers to the portion of the subsidiary's equity that is owned by outside investors (i.e. not the parent company). Choice B (equity interest) and C (subsidiary interest) are not the correct definitions used in accounting standards, and choice D (controlling interest) refers to the portion of equity held by the parent company that gives it control over the subsidiary, which is not what the question is asking for.

The Equity in a Subsidiary Not Attributable,directly or Indirectly,to a Parent