Noncontrolling interests appear on a consolidated balance sheet when a parent company owns more than 50 percent but less than 100 percent of a subsidiary's common stock.

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Noncontrolling interests, also known as minority interests, are reported on the consolidated balance sheet when a parent company owns between 50 percent and 100 percent of a subsidiary's common stock. This is because the parent company has control over the subsidiary but does not own all of the subsidiary's shares. The noncontrolling interest represents the portion of the subsidiary's equity that is not owned by the parent company.

Noncontrolling Interests Appear on a Consolidated Balance Sheet When a Parent