Which of the following reflects how a non-controllinged interest is presented according to IFRS?
A)When a non-controlled interest exists in an entity controlled by a government, the proportionate consolidation method is used to account for portion of the entity controlled by the government.
B)A non-controlled interest is presented separately within equity, separate from owners' equity.
C)An enterprise may consolidate its subsidiaries.
D)An enterprise may account for its subsidiaries using either the equity method or the cost method.

Question

Quizplus · Accepted Answer

According to IFRS, non-controlling interests (NCI) are presented as a separate component of equity, distinct from the equity of the parent company. This is because NCI represents the portion of the subsidiary's equity that is not owned by the parent company. Therefore, option B is the correct answer. Option A is incorrect because the proportionate consolidation method is not used for a non-controlled interest, but rather for entities that are jointly controlled. Option C and D are also incorrect as they do not relate to the presentation of non-controlling interests in the financial statements.

Which of the Following Reflects How a Non-Controllinged Interest Is