An ownership stake in a corporation where the held position gives the investor no influence on how the company is run.
The magnitude of the minority interest in the subsidiary company is generally less than 50% of outstanding shares, or the corporation would generally cease to be a subsidiary of the parent. A key concern of investors is that they cannot be sure what part of the reported cash position is owned by a 100% subsidiary and what part is owned by a 51% subsidiary. Minority interest is an integral part of the enterprise value of a company. DEFINITION of 'Non-Controlling Interest'. An ownership stake in a corporation where the held position gives the investor no influence on how the company is run. The majority of investor positions are deemed to be a non-controlling interest because their ownership stake is so insignificant relative to the total number of outstanding shares. For the majority of publically traded companies, the number of outstanding shares is so large that a normal position cannot influence higher level activity, which is why it is deemed as a non-controlling interest. Noncontrolling interest (NCI) is the portion of equity ownership in a subsidiary not attributable to the parent company, who has a controlling interest (greater than 50% but less than 100%) and consolidates the subsidiary's financial results with its own. Changes in Controlling Interest. Since NCI is now considered equity, changes in a parent's controlling interest in its subsidiary that do not result in change of control are accounted for as equity transactions, or transactions between shareholders. Under IFRS, the minority interest (non-controlling interest) is reported in the Equity section of the consolidated balance sheet. Under US GAAP, minority interest can be reported in the liabilities section, the equity section, or the mezzanine section of the balance sheet. The Mezzanine section is located between liabilities and equity. A key concern of investors is that they cannot be sure what part of the reported cash position is owned by a 100% subsidiary and what part is owned by a 51% subsidiary. Minority interest is an integral part of the enterprise value of a company. International Accounting Standard 27 (IAS 27) defines non-controlling interest as “the equity in a subsidiary not attributable, directly or indirectly, to a parent”. The similar term  minority interest  was previously used in standards. Non-controlling interest (NCI) is ownership of a company which does not give the shareholder the control of the company. The 25% of Beta's equity that Alpha does not own is recorded on Alpha's balance sheet as Non-controlling interest. Consolidated net income will be allocated to the parent and non-controlling interests in proportion to their ownership percentages i.e. 75% to Alpha and 25% to the non-controlling interests. Use the Non Controlling Interest Rule page (GC_NCI_RUL_PG) to define a non-controlling interest rule and identify the source ChartField value sets for the subsidiary equity and parent investment accounts. select Global Consolidations, then select Define Consolidations, then select Non-Controlling Interest Rules, then select Non-Controlling Interest Rule, then select Out of Balance. Identify to which ChartFields you want to record any out of balance amounts that result from non-controlling interest eliminations. From Wikipedia, the free encyclopedia. In accounting, minority interest (or non-controlling interest) is the portion of a subsidiary corporation's stock that is not owned by the parent corporation. A key concern of investors is that they cannot be sure what part of the reported cash position is owned by a 100% subsidiary and what part is owned by a 51% subsidiary. Minority interest is an integral part of the enterprise value of a company. BREAKING DOWN 'Controlling Interest'. For the majority of large public companies (such as those that belong to the S&P 500), a shareholder with much less than 50% of the outstanding shares can still cause a lot of shake-up at the company. When one shareholder or a group acting in kind holds a high enough percentage of ownership in a company to enact changes at the highest level. By definition, this figure is 50% of the outstanding shares or voting shares, plus one. DEFINITION of 'Controlling Interest'. When one shareholder or a group acting in kind holds a high enough percentage of ownership in a company to enact changes at the highest level. By definition, this figure is 50% of the outstanding shares or voting shares, plus one.
https://en.wikipedia.org/wiki/Minority_interest http://www.investopedia.com/terms/n/noncontrolling_interest.asp http://macabacus.com/accounting/noncontrolling-interest https://en.wikipedia.org/wiki/Minority_interest http://www.readyratios.com/reference/accounting/non_controlling_interest_nci.html http://docs.oracle.com/cd/E41507_01/epm91pbr3/eng/epm/pgcs/task_DefiningNon-ControllingInterestRules-399848.html https://en.wikipedia.org/wiki/Minority_interest http://www.investopedia.com/terms/c/controllinginterest.asp http://www.investopedia.com/terms/c/controllinginterest.asp
definition of non controlling interest