The purchase of additional shares from the non-controlling interest of a subsidiary by the parent results in disclosure in which section of a cash flow statement?

Question

Quizplus · Accepted Answer

The purchase of additional shares from the non-controlling interest of a subsidiary by the parent is a financing activity because it involves the inflow or outflow of funds related to the capital structure of the company. Therefore, it should be disclosed in the financing activities section of the cash flow statement.

The Purchase of Additional Shares from the Non-Controlling Interest of a Subsidiary