A non-controlling interest is entitled to a share of which of the following items?
I Equity of the parent at acquisition date
II Current period profit or loss of the subsidiary entity
III Changes in equity of the subsidiary since acquisition date and the beginning of the financial period
IV Equity of the subsidiary at acquisition date
A) I, II and III
B) I and II only
C) II, III and IV only
D) III only.

Question

Quizplus · Accepted Answer

A non-controlling interest is entitled to a share of the equity of the subsidiary at acquisition date (IV), the current period profit or loss of the subsidiary entity (II), and changes in equity of the subsidiary since acquisition date and the beginning of the financial period (III). The equity of the parent at acquisition date (I) is not relevant to the non-controlling interest. Therefore, option A and B are incorrect. Additionally, the non-controlling interest is entitled to a share of changes in equity since acquisition date and beginning of the financial period (III), not just one or the other, so option D is incorrect.

A Non-Controlling Interest Is Entitled to a Share of Which