A noncontrolling (minority)interest is defined as:

Question

Quizplus · Accepted Answer

A noncontrolling (minority) interest represents equity in a subsidiary company held by stockholders other than the parent company. This means that a parent company owns less than 100% of the subsidiary and the remaining equity is held by other investors, hence the term "noncontrolling." Option A is incorrect because there is no specific threshold or percentage that defines a noncontrolling interest. Option B is incorrect because it is the opposite - it refers to a parent company owning all of the stock of a subsidiary. Option D is incorrect because a parent company can still have controlling interest even if it doesn't own 50% of the shares - this depends on other factors like voting rights and board control.

A Noncontrolling (Minority)interest Is Defined As