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
Note: Elimination processes follow this hierarchical order:
  • 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.