Disclosure of non-controlling interests in the balance sheet

The calculation of non-controlling interests in the balance sheet involves the calculation of direct and indirect non-controlling interests. Depending on whether direct and indirect non-controlling interests exist for an entity, up to two journal entries are created for each entity.

Select Business Modeling > Business Objects > Financial > Group Accounts and select the appropriate non-controlling interests account in the Non Controlling Interests column for the required group accounts. To enable this configuration to take effect, publish the model in Business Modeling.

Example of disclosure of direct minorities in the balance sheet for the share capital

Genesis Cars owns 80% of Genesis Finance.

Genesis Finance has these shared values sections:

Shared values section Value Stakeholders' portion (80%) Minority portion (20%)
Shared Capital 7,928,621.03 6,342,896.82 1,585,724.21
Additional Paid in Capital 1,631,897.48 1.305.517,98 326,379.5
Pre-Acquisition Retained Earnings 1,658,947.03 1,327,157.60 331,789.43

Based on calculated percentages for direct and indirect minorities, the minority portions are shifted from the equity accounts to the corresponding minority accounts.

This table shows an example of shifting a minority portion for the share capital 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 (L110100) Share Capital External Increases 1,585,724.21
Genesis Finance (L120100) Share Capital Minorities External Increases 1,585,724.21

This list shows examples of other possible minority portion shifts:

  • From Additional Paid in Capital to Other Reserve Minorities
  • From Pre Acquisition Retained Earnings to Pre Acquisition Retained Earnings Minorities
  • From Post Acquisition Retained Earnings to Post Acquisition Retained Earnings Minorities
  • From Other Reserve Movements to Profit (Loss) for the Periods Minorities
  • From Consolidation Reserve to Consolidation Reserve Minorities
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.

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