The non-controlling interest columns on a consolidation worksheet are used to:
A) adjust the amounts that have been recorded for intragroup sales.
B) adjust the amounts that have been recorded for intragroup services.
C) eliminate the recorded amounts of the non-controlling investment in the subsidiary.
D) compile the amounts of non-controlling interest and parent share of particular line items.

Question

Quizplus · Accepted Answer

The non-controlling interest column on a consolidation worksheet is used to compile the amounts of non-controlling interest and parent share of particular line items. This helps to differentiate the amounts that belong to the parent company and the amounts that belong to the non-controlling interest holders in the subsidiary. The other options (A, B, and C) are not the primary purpose of the non-controlling interest column. Intragroup sales and services are eliminated in the consolidation process, and the non-controlling investment is shown separately on the balance sheet.

The Non-Controlling Interest Columns on a Consolidation Worksheet Are Used