non controlling interest что это

Non-Controlling Interest (NCI)

What is a Non-Controlling Interest (NCI)?

A non-controlling interest (NCI) is an ownership stake of less than 50% in a corporation, where the equity stake held gives the investor little influence Investor Influence The level of investor influence a company holds in an investment transaction determines the method of accounting for said private investment. The accounting for the investment varies with the level of control the investor possesses. to determine how the company is run. The proportion of voting rights is used to determine if an investor has an NCI. Another name for such a type of investment is a minority interest. Minority Interest in Enterprise Value Calculation Enterprise Value has to be adjusted by adding minority interest to account for consolidated reporting on the income statement.

A non-controlling interest is also specifically used in relation to subsidiary companies with equity interests owned by outside investors, rather than the parent company.

Criteria for a Non-Controlling Interest

A non-controlling interest (minority interest) occurs when an ownership stake is less than 50% of the outstanding voting shares. However, sometimes the threshold is lower, as a shareholder may hold only 49% of a company, but by controlling the board of directors, is able to direct decisions of the company.

For the majority of publicly traded companies, most shareholders would be classified as holding non-controlling interests, as most have a wide shareholder base. It is generally not until an investor holds 5%-10% of the total outstanding shares that they can push for a seat on the board, or significantly drive changes at shareholders’ meetings by publicly lobbying for them.

Types of Non-Controlling Interest

There are generally two types of non-controlling interests:

A Direct NCI receives a proportionate share of all equity recorded by the subsidiary Subsidiary A subsidiary (sub) is a business entity or corporation that is fully owned or partially controlled by another company, termed as the parent, or holding, company. Ownership is determined by the percentage of shares held by the parent company, and that ownership stake must be at least 51%. – the equity balances include both pre-acquisition and post-acquisition amounts.

An Indirect NCI receives a proportionate share of a subsidiary’s post-acquisition equity only.

Calculating Share of Equity

In calculating the NCI share of equity, it is consolidated equity rather than recorded equity on which the NCI is calculated. Hence, in calculating both the DNCI and INCI share of equity, adjustments must be made to eliminate any unrealized profits or losses arising from transactions within the group.

Accounting Treatment of Non-Controlling Interest

A parent with controlling interest implements the consolidated method of accounting. The parent company combines 100% of the assets and incomes from the subsidiary with its financial statements. The percentage of the parent’s ownership of the subsidiary’s equity does not matter.

However, to keep track of the value owned by the non-controlling shareholders, the parent company separates the non-controlling interest portion on its balance sheet and income statement.

Companies owning less than 50% of the subsidiary implement either the cost method (20% or less) or the equity method (above 20% and below 50%). Neither of the methods reports non-controlling interest.

Video Explanation of Non-Controlling Interest

Watch this short video to quickly understand the main concepts covered in this guide, including what non controlling interest is, the criteria, and its different types.

Additional Resources

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non-controlling interest

Смотреть что такое «non-controlling interest» в других словарях:

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minority interest — An outside ownership interest in a subsidiary that is consolidated with the parent company for financial reporting purposes. Bloomberg Financial Dictionary * * * minority interest minority interest ➔ interest * * * An important but non… … Financial and business terms

Minority Interest — 1. A significant but non controlling ownership of less than 50% of a company s voting shares by either an investor or another company. 2. A non current liability that can be found on a parent company s balance sheet that represents the proportion … Investment dictionary

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Non-Controlling Interest

What Is Non-Controlling Interest?

A non-controlling interest, also known as a minority interest, is an ownership position wherein a shareholder owns less than 50% of outstanding shares and has no control over decisions. Non-controlling interests are measured at the net asset value of entities and do not account for potential voting rights.

Most shareholders of public companies today would be classified as holding a non-controlling interest, with even a 5% to 10% equity stake considered to be a large holding in a single company. A non-controlling interest may be contrasted with a controlling, or majority interest in a company, where the investor does have voting rights and can often affect the course of the company.

Key Takeaways

Non-Controlling Interest

Understanding Non-Controlling Interest

Most shareholders are granted a set of rights when they purchase common stock, including the right to a cash dividend if the company has sufficient earnings and declares a dividend. Shareholders may also have the right to vote on major corporate decisions, such as a merger or company sale. A corporation can issue different classes of stock, each with different shareholder rights.

Generally, there are two types of non-controlling interests: a direct non-controlling interest and an indirect non-controlling interest. A direct non-controlling interest receives a proportionate allocation of all (pre and post-acquisition amounts) recorded equity of a subsidiary. An indirect non-controlling interest receives a proportionate allocation of a subsidiary’s post-acquisition amounts only.

It is generally not until an investor controls 5% to 10% of the shares that they communicate specific proposals to the board and management, propose changes to the board of directors, propose changes at a shareholder meeting and team with other investors to make their actions more likely to succeed. Such investors are termed Activist investors. Activist investors range widely in style of action and objectives. Objectives range from seeking operational improvements to restructuring to natural environment and social policy.

Financial Statements and Non-Controlling Interest

Consolidation is a set of financial statements that combine the accounting records of several entities into one set of financials. These typically include a parent company, as the majority owner, a subsidiary, or a purchased firm, and a non-controlling interest company. The consolidated financials allows investors, creditors, and company managers to view the three separate entities as if all three firms are one company.

A consolidation also assumes that a parent and a non-controlling interest company jointly purchased the equity of a subsidiary company. Any transactions between the parent and the subsidiary company, or between the parent and the non-controlling interest firm, are eliminated before the consolidated financial statements are created.

Example of Non-Controlling Interest

Assume that a parent company buys 80% of XYZ firm and that a non-controlling interest company buys the remaining 20% of the new subsidiary, XYZ. The subsidiary’s assets and liabilities on the balance sheet are adjusted to fair market value, and those values are used on the consolidated financial statements. If the parent and a non-controlling interest pay more than the fair value of the net assets, the excess is posted to a goodwill account in the consolidated financial statements.

Goodwill is an additional expense incurred to buy a company for more than the fair market value, and goodwill is amortized into an expense account over time after an impairment test. This is done under the purchase acquisition accounting method approved by the Financial Accounting Standards Board (FASB).

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Неконтролируемый интерес

Опубликовано 02.06.2021 · Обновлено 02.06.2021

Что такое неконтролирующий интерес?

Неконтролирующая доля участия, также известная как доля меньшинства, – это доля владения, при которой акционер владеет менее 50% выпущенных акций и не может контролировать решения. Неконтролирующие доли участия оцениваются по стоимости чистых активов компаний и не учитывают потенциальные права голоса.

Ключевые выводы

Понимание неконтролирующих интересов

Большинству акционеров предоставляется набор прав при покупке обыкновенных акций, включая право на получение дивидендов в денежной форме, если компания имеет достаточную прибыль и объявляет дивиденды. Акционеры также могут иметь право голоса при принятии важных корпоративных решений, таких как слияние или продажа компании. Корпорация может выпускать акции разных классов, каждый с разными правами акционеров.

Как правило, существует два типа неконтролирующих долей участия: прямая неконтролирующая доля и косвенная неконтролирующая доля. Прямая неконтролирующая доля участия получает пропорциональное распределение всего (до и после приобретения) зарегистрированного капитала дочерней компании. Непрямая неконтролирующая доля участия получает только пропорциональное распределение сумм дочерней компании после приобретения.

Как правило, только когда инвестор контролирует от 5% до 10% акций, он сообщает конкретные предложения совету директоров и руководству, вносит изменения в совет директоров, предлагает изменения на собрании акционеров и объединяется с другими инвесторами для осуществления своих действий. больше шансов на успех. Таких инвесторов называют инвесторами-активистами. Инвесторы-активисты различаются по стилю действий и целям. Цели варьируются от поиска операционных улучшений до реструктуризации окружающей среды и социальной политики.

Финансовая отчетность и неконтролирующая доля участия

Консолидация – это набор финансовых отчетов, которые объединяют бухгалтерские записи нескольких организаций в один набор финансовых отчетов. Обычно к ним относятся материнская компания в качестве мажоритарного собственника, дочерняя компания или приобретенная фирма, а также компания с неконтролирующей долей участия. Консолидированная финансовая отчетность позволяет инвесторам, кредиторам и менеджерам компаний рассматривать три отдельных объекта, как если бы все три фирмы были одной компанией.

Консолидация также предполагает, что материнская компания и компания с неконтролирующей долей участия совместно приобрели капитал дочерней компании. Любые операции между материнской и дочерней компанией или между материнской и неконтролирующей фирмой исключаются до создания консолидированной финансовой отчетности.

Пример неконтролирующей доли

Предположим, что материнская компания покупает 80% фирмы XYZ, а компания с неконтролирующей долей участия покупает оставшиеся 20% новой дочерней компании XYZ. Активы и обязательства дочерней компании в балансе корректируются до справедливой рыночной стоимости, и эти значения используются в консолидированной финансовой отчетности. Если материнская компания и неконтролирующая доля участия платят больше, чем справедливая стоимость чистых активов, превышение проводится на счет гудвила в консолидированной финансовой отчетности.

Деловая репутация – это дополнительные расходы, понесенные при покупке компании на сумму, превышающую ее справедливую рыночную стоимость, и деловая репутация с течением времени списывается на счет расходов после проверки на обесценение.Это делается в соответствии сметодом учета приобретения, утвержденным Советом по стандартам финансового учета (FASB).

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Non-Controlling Interest

What is Non-Controlling Interest?

Non-controlling interest refers to the minority shareholders of the company who own less than 50% of the overall share capital and therefore doesn’t have control over the decision-making process of the company.

Generally, in the case of publicly traded companies, most of the shareholders are minority shareholders, and only promoters could be categorized as majority or controlling shareholders. In case of consolidation of accounts, the amount attributable to minority, based on net assets value, is shown separately as a Non-controlling interest in the Balance Sheet reserves and a surplus of the entity.

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Non-Controlling Interest Types

There are two types – Direct and Indirect.

#1 – Direct

For Example:

#2 – Indirect

It is one where the minority shareholders receive a proportionate allocation of post-acquisition profits only, i.e., he would not receive a share in the pre-existing profits of the company.

For Example:

Company A holds 20% shares in Company B, company A also acquired 60% shares of Company P, which holds 70% of the shares of Company B. Thus, the shareholding of Company P and Company B would look as under, post-acquisition:

Company P:

Company B:

Indirect Non-controlling interest: It is calculated using the direct interest on Balance Sheet of P ltd, i.e., 40% * 70% = 28%

Accounting for Non-controlling interest on Balance Sheet

Consolidation is applicable when an entity holds the majority stake in another entity, which is known as the subsidiary entity. As Consolidation combines two or more than two sets of financial statements, it allows the stakeholders, such as investors, creditors, lenders, etc. to view the combined financial statements of all the three entities as if that was one entity.

Example #1

Net income of Company L and M can be computed as under:

Allocation of net income of Company M, between controlling and non-controlling interest, is as under:

Consolidated net income can be computed as under:

Example #2

The following extract is from the Financial statements of Nestle for the year ended 31 st December 2018, which shows the profit is attributed to the non-controlling interest and shareholders of parent:

Following is the extract of the consolidated balance sheet of Nestle which shows the amount attributable to Non-controlling interest:

It thus represents the amount attributable to shareholders who are not the significant shareholders of the company and have no authority of decision making in the company. The amounts attributable to NCI are shown separately in the consolidated financial statements, as it is the amount that doesn’t belong to the parent entity and is attributable to minority shareholders.

Recommended Articles

This article has been a guide to What is Non-Controlling Interest and its Definition. Here we discuss the two types of non-controlling interest on the balance sheet and its accounting while consolidating the books with examples. You can learn more about accounting from the following articles –

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