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How to Calculate Noncontrolling Interest for the Balance Sheet

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How to Calculate Noncontrolling Interest for the Balance Sheet

36,019 views October 25, 2017 4:05

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ChannelEdspira

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This video discusses the Balance Sheet account called Noncontrolling Interest. Noncontrolling Interest arises when one company purchases more than 50% but less than 100% of another company. The purchasing company is required to consolidated 100% of the target company's assets and liabilities, yet it controls less than 100% of the target company. For this reason, a stockholders' equity account called Noncontrolling Interest is created to represent the claims of the minority shareholders against the target company. The video provides an example to demonstrate how the amount of the noncontrolling interest figure is calculated by determining the imputed value of the target company and then multiplying the imputed value by the minority shareholders' ownership percentage.—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
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About this tutorial

Edspira published this 4:05 video tutorial on October 25, 2017. It has been watched 36,019 times on YouTube.

Channel
Edspira
Category
Education
Duration
4:05
Published
October 25, 2017
Views
36,019
Likes
273

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Further reading

  • How to Calculate Consolidated Non-Controlling Interest on a ... bizfluent.com

    Subtract the non-controlling interest's prorated share of dividends from the non-controlling interest's computed fair value. For instance, if the total fair value of non-controlling interest is $24 million and the prora…

  • Non-Controlling Interest | Accounting for NCI on Balance Sheet wallstreetmojo.com

    Accounting for Non-controlling interest on Balance Sheet Accounting for minority interest comes into picture while consolidation of books of accounts by the holding company . Consolidation refers to the process by which…

  • Non-controlling Interest (NCI) | Formula and Example xplaind.com

    Non-controlling interest is a component of shareholders equity as reported on a consolidated balance sheet which represents the ownership interest of shareholders other than the parent of the subsidiary. Non-controlling…

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