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

Question

How is NCI treated in the three statements? Give concrete mechanics.

Answer

On the balance sheet, NCI appears in equity for the minority share of the subsidiary's net assets. On the income statement, 100% of subsidiary net income is consolidated, then the portion attributable to NCI is deducted to arrive at net income attributable to the parent. On the cash flow statement, cash flows are consolidated 100%; dividends paid to NCI are financing outflows.

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