Disclosure of non-controlling interests in the income statement
This process calculates the minority share of the income statement. Then the process creates a journal that transfers this share from the income statement to the Non-Controlling Interests section of the balance sheet.
To enable the calculation of a non-controlling interest in the income statement, you must configure the Capital Consolidation process in the process configuration.
A non-controlling interest is calculated based on the value from the base account. This formula is used:
base account * ( direct non-controlling interest + indirect non-controlling interest)
Example of disclosure of minorities in the income statement
Genesis Cars owns 80% of Genesis Finance.
The debit side of Genesis Finance's income statement shows a loss of 10,806,649. To disclose the minority proportion of 20% of the loss, which is 2,161,329.80, the proportion must be booked as a credit. The counterpart must be booked as a debit on the balance sheet account for minorities.
This table shows an example of booking the 20% minority proportion by an automatically generated journal. In this example, segments 1, 2, 3 and intersegments 1, 2, 3 are unassigned.
Entity | Account | Intercompany | Schedule Detail | Debit | Credit |
---|---|---|---|---|---|
Genesis Finance | (I90000) Minority Interest | External | 2,161,329.80 | ||
Genesis Finance | (L120520) Profit (Loss) for the period Minority | External | Net Profit and Loss for the period | 2,161,329.80 |
- Account
- Entity
- Intercompany
- Schedule detail
- Segment 1
- Intersegment 1
- Segment 2
- Intersegment 2
- Segment 3
- Intersegment 3
For each matching combination, a journal line must be created.