When calculating return on equity minority, interest is added to the numerator as it has been deducted in arriving at net income.

Question

Quizplus · Accepted Answer

When calculating return on equity (ROE), minority interest is not added to the numerator. ROE is calculated using net income attributable to shareholders of the parent company, which already accounts for minority interest in the calculation of net income.

When Calculating Return on Equity Minority, Interest Is Added to the Numerator