Module V· Non-Controlling Interest (NCI) in M&AIntermediate

Question

How do you model the NCI line over the forecast period? Base walk with example.

Answer

Start with opening NCI on the balance sheet. Add the minority share of subsidiary net income. Subtract dividends paid to minority shareholders. Adjust for other equity movements if relevant. Formula: ending NCI = opening NCI + NCI share of net income - dividends to NCI +/- OCI and transactions. In the income statement, deduct NCI share of net income to arrive at parent net income.

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