# Calculation of minorities

Minorities are calculated based on the group ownership percentages that are displayed on the Legal Group Ownership and Management Group Ownership pages.

If a parent does not have 100% ownership of a subsidiary, then the difference between 100% and the ownership must be recognized as a minority in the balance sheet and profit and loss of the subsidiary within the group. The minority is the part that is not owned by the group, but is owned by others who do not have more than 50% ownership.

Minorities can be direct or indirect minorities.

If the ownership is not 100%, then the remainder is a direct minority. For example, if RU0003 has ownership of 75% of RU0004, then there is a direct minority of 25%

If a top parent entity has less than 100% ownership of a second entity, and that entity has less than 100% ownership of a third entity, then the top parent has only indirect ownership of the third entity. Thus, there is an indirect minority. For example, if RU0001 has ownership of 98% of RU0003 and RU0003 has ownership of 75% of RU0004, then there is a direct minority of 2% between RU0001 and RU0003, and 25% between RU0003 and RU0004. There is an indirect minority of 1.5% between RU0001 and RU0004. This is calculated by this formula:

98% x 75% = 73.5%

The difference between the direct ownership of 75% and the calculated ownership for the group of 73.5% is the indirect minority of 1.5%.