When calculating the direct non-controlling interest share of equity, consolidation adjustments are needed to:

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When calculating the direct non-controlling interest share of equity, consolidation adjustments are needed to fully eliminate any unrealised profits or losses from intragroup transactions. This is done to ensure that the financial statements reflect the true economic results of the group, and to prevent overstatement of profits. Choices A and D are incorrect as they relate specifically to inventories transfers, which may or may not be relevant to the calculation of the non-controlling interest share of equity. Choice B is incorrect as it refers to unrealised profits or losses from intragroup service transfers, which may also not be relevant to the calculation.

When Calculating the Direct Non-Controlling Interest Share of Equity, Consolidation