Which of the following statements is incorrect with regards to non-controlling interests in subsidiaries?
A) A non-controlling interest is defined as equity in a subsidiary not attributable, directly or indirectly, to a parent.
B) Under the entity concept, if subsidiaries are partly owned by the parent entity, both the parent entity and the non-controlling interests will have an ownership interest in the subsidiary's profits, dividend payments, and share capital and reserves.
C) Under the entity concept, non-controlling interests will be shown as a liability.
D) Under the proprietary concept, non-controlling interests will be shown as a liability.

Question

Quizplus · Accepted Answer

Non-controlling interests are shown as equity in the consolidated financial statements, not as a liability. Choice C is incorrect as it states that under the entity concept, non-controlling interests will be shown as a liability, which is not true. The other options are correct statements.

Which of the Following Statements Is Incorrect with Regards to Non-Controlling