Minority Interest

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anybody help me with a way of working out mnority interest? I am currently having nightmares about DFS in December. Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Minority Interest

    Minority interest is the %age of net assets which do not belong to a group entity. For example, if H holds 75% of the share capital of S then the minority interest will be 25% (i.e. the value of shares not owned by H).

    the minority interest calculation is therefore net assets x %age of minority interest. For example, H holds 75% of the share capital of S whose net assets are £10,000. The minority interest is therefore (£10,000 x 25%) = £2,500.

    Hope that helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Minority Interest

    Thanks for that, this is one thing I have struggled with, my tutor has taught us to create a table which confused the hell out of me your way is much easier to understand.
    Thanks Again

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