According to AASB 10 Consolidated Financial Statements,a non-controlling interest is classified as:
A)part of the parent entity's equity.
B)part of the group's equity.
C)a liability of the parent entity.
D)an asset of the group.

Question

Quizplus · Accepted Answer

A non-controlling interest represents the portion of a subsidiary's equity that is not attributable to the parent company. According to AASB 10, a non-controlling interest is classified as part of the group's equity, which includes the parent's equity and the non-controlling interest's share of the subsidiary's equity. Therefore, answer choice B is the best choice. Option A is incorrect because the non-controlling interest is not part of the parent entity's equity alone. Option C is incorrect because a non-controlling interest is not a liability. Option D is incorrect because a non-controlling interest is not an asset of the group alone, but is rather part of the group's equity.

According to AASB 10 Consolidated Financial Statements,a Non-Controlling Interest Is