When a parent increases its ownership interest, the difference between the amount that was paid by the parent and the amount that was transferred from the non-controlling interest is allocated to equity.

Question

Quizplus · Accepted Answer

This statement is true. When a parent increases its ownership interest, any difference between the amount paid by the parent and the amount transferred from the non-controlling interest is allocated to equity. This is because the parent is essentially investing in its own company, which increases the overall equity of the business.

When a Parent Increases Its Ownership Interest, the Difference Between