Company X controls Company Y so that Company Y's financial statements are fully consolidated in the group accounts.With respect to Company X's financial statements,third-party stakes in Company Y:
A)Are not of concern.
B)Are to be deducted and are called noncontrolling interest.
C)Are to be added in and are called noncontrolling interest.
D)Are illegal.

Question

Quizplus · Accepted Answer

Noncontrolling interest represents the portion of equity in a subsidiary not attributable to the parent company, which must be presented separately in the consolidated financial statements. This acknowledges the interest of third parties in the subsidiary's net assets and results.

Company X Controls Company Y So That Company Y's Financial