Minority interests are defined is AASB 127 as:
A) that portion of profit or loss and net assets of a subsidiary attributable to equity interests that are not owned directly by the parent.
B) that portion of net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent.
C) that portion of profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent.
D) that portion of profit or loss and net assets of a subsidiary attributable to equity interests that are not owned indirectly through subsidiaries, by the parent.
E) the largest single shareholding, less fifty per cent, not owned, directly or indirectly through subsidiaries, by the parent.

Question

Quizplus · Accepted Answer

Minority interests refer to the portion of profit or loss and net assets of a subsidiary that is attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent. Option A is partially correct but it excludes the indirect ownership of equity interests through subsidiaries. Option B excludes the portion of profits or loss attributable to minority interests. Option D only considers indirect ownership but overlooks direct ownership. Option E is incorrect as it refers to the largest single shareholding and sets a specific threshold for determining minority interests.

Minority Interests Are Defined Is AASB 127 As