Which of the following statements regarding the non-controlling interest is FALSE?
A)In a subsidiary that is not wholly owned by the parent, there are two ownership interests, namely the parent and the non-controlling interest (NCI).
B)The NCI consists of the accumulation of all the interests in the subsidiary other than the parent.
C)The NCI is classified as a contributor of equity to the group.
D)The NCI is entitled to a share of the equity, as recorded, of the subsidiary.

Question

Quizplus · Accepted Answer

The NCI is entitled to a share of the subsidiary's net assets (equity), not just as recorded, but also including their share of earnings and any other components of equity. The statement as phrased suggests a limitation to only the recorded equity, which is misleading.

Which of the Following Statements Regarding the Non-Controlling Interest Is