Non-controlling interest is entitled to as:
A) a part of the equity of the parent entity.
B) a part of the equity of the subsidiary entity.
C) a part of the equity of the parent entity as reflected in the consolidated equity.
D) a part of the equity of the subsidiary entity as reflected in the consolidated equity.

Question

Quizplus · Accepted Answer

Non-controlling interest refers to the portion of a subsidiary company's equity that is owned by entities other than the parent company. As such, the non-controlling interest is entitled to a portion of the equity of the subsidiary entity as reflected in the consolidated equity. Choice A is incorrect as it refers to the equity of the parent entity, which is not where the non-controlling interest is held. Choice B is also incorrect as it only refers to the equity of the subsidiary entity, but does not account for the consolidation process. Choice C is partially correct but only covers a portion of the answer, as it only refers to the equity of the parent entity as reflected in the consolidated equity, but does not account for the equity of the subsidiary entity.

Non-Controlling Interest Is Entitled to As