The parent interest (PI)in equity will be calculated as follows:
A) consolidated equity less non-controlling interest.
B) parent equity plus PI share of subsidiary equity.
C) parent equity plus non-controlling interest.
D) none of the above.

Question

Quizplus · Accepted Answer

Parent interest in equity is the portion of equity that relates to the parent company's ownership in subsidiaries, after deducting the non-controlling interest. Therefore, option A, which deducts non-controlling interest from consolidated equity, is the correct choice.

The Parent Interest (PI)in Equity Will Be Calculated as Follows