Journal of Accounting and Management Information Systems (JAMIS)


Minority interests’ positioning inside consolidated balance sheet

Supp/2006 ,   p284..291

Author(s):  
Cosmina PITULICE


Keywords:   non-controlling interests, subsidiary, parent company, equity, liability

Abstract:  
The paper studies the position that minority interests (or external partners, as they are called by some authors) should have inside consolidated balance sheet prepared by groups of companies. According to some theories, they should be treated as liability. According to others, minority interests are part of the group equity. What if they are written inside balance sheet as a separate line between group’s equity and its liabilities as several authors propose? Based on literature review and on international and national accounting regulations analysis, the paper emphasises the advantages and disadvantages of the above mentioned hypotheses, trying to delimitate the best disclosure of minority interests so that consolidated financial statements users are not affected in their decision-making process.


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