A non- controlling interest that has an interest in a subsidiary as a result of having an interest in the parent of that subsidiary is referred to as a/an:
A)indirect non- controlling interest
B)passive non- controlling interest
C)direct non- controlling interest
D)none of the above

Question

Quizplus · Accepted Answer

An indirect non-controlling interest is a non-controlling interest in a subsidiary that is held as a result of having an interest in the parent company of that subsidiary. This differs from a direct non-controlling interest, which is a non-controlling interest held directly in the subsidiary itself. A passive non-controlling interest is not a commonly used term in accounting and finance.

A Non- Controlling Interest That Has an Interest in a Subsidiary