Investor Glossary-minority interestInvestor Glossary-minority interestInvestor Glossary-minority interestInvestor Glossary-minority interestInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Minority Interest

The HTML to link to this page
 

Minority interest represents shares owned by third parties when Company A acquires Company B. In other words, minority interest represents the equity interest of outside shareholders in consolidated subsidiaries. Under GAAP, if Company A owns 50% or more of Company B, the two companies are treated as if they were one for financial statement purposes. Thus an account - namely, minority interest - must be presented to indicate that not all the assets and liabilities are related to Company A, the parent company. Minority interest ordinarily appears on the balance sheet between liabilities and shareholders equity. On the income statement, minority interest in the income of a consolidated subsidiary is shown as a deduction of consolidated net income. If Company A has a minority interest of less than 50% in Company B, then minority interest does not appear on the balance sheet or income statement of Company A, and other methods are used to account for its minority interest.



Rate this minority interest definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: liquidity ratio, annual return, wholly-owned subsidiary, debt service coverage, margin rate, 1031 exchange, covered put, inflation, EBITDA, irrevocable trust, deferred tax, open position, 1035 exchange, ex-dividend date, stock split, labor relations, cancelled check, required rate of return, stock market close, limit order, real GDP, APR, in escrow, quality assurance, FTSE, LIBOR, per diem, FICO score, current ratio, Zero Cost Collar, average price per share, class C shares, deferred revenue, VIX, retained earnings, implied volatility, ex-dividend, dividends payable, option premium, balance sheet, command economy, minority interest, Key Rate Duration, diluted share, phantom income, risk management, 144a, reverse mortgage, 401a


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use