The consolidation technique of NCI allocation is based on the proposition that non-controlling shareholders have an ownership interest in group equity.

Question

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The consolidation technique of NCI allocation assumes that non-controlling shareholders have an ownership interest in the group equity, which is why it is necessary to allocate a portion of the consolidated net income and assets to them. This is based on the principle of economic substance over legal form, where the actual economic reality of the investment is more important than its legal structure.

The Consolidation Technique of NCI Allocation Is Based on the Proposition