When preparing and presenting a consolidated statement of comprehensive income the non-controlling interest is:
A) presented as a separate component of revenue
B) shown as a separate component of profit before tax and a separate component of tax expense
C) shown as a separate component of each line item
D) presented as a separate portion of profit or loss.

Question

Quizplus · Accepted Answer

Non-controlling interest is typically presented as a separate portion of profit or loss in consolidated statements of comprehensive income. This is because it represents the portion of the profits or losses of a subsidiary that is attributed to external shareholders who do not have control over the subsidiary's operations. By presenting it separately, users of the financial statements can better understand the impact of the non-controlling interest on the overall performance of the consolidated entity.

When Preparing and Presenting a Consolidated Statement of Comprehensive Income