Minorities, minority interest

By:

James Knight

James is a lead editor for Invezz, where he covers topics from across the financial world, from the stock… read more.

Updated: Aug 20, 2021

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Elements shown in the consolidated accounts of groups of companies where one or more of the subsidiaries is not wholly owned by the parent. Where a company owns 95 per cent of the ordinary capital of a subsidiary, for example, and its accounts are consolidated, then the whole of the assets and income of the subsidiary will be included in the consolidated accounts. In showing net assets attributable to shareholders of the parent company, 5 per cent in this case (the minority) belongs to the minority shareholders and must be deducted. Similarly, in calculating net income attributable to the same shareholders, earnings will be shown after minority interest.

Reference: The Penguin Dictionary of Economics, 3rd edt.