Discuss the Reason for Recognising Non-Controlling Interests as Part of Equity,rather

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The Answer is The consolidated financial statements reflect the financial position and financial performance of the economic entity as if it were operating as a single economic unit under common managerial control-the control emanating from the management group of the ultimate parent organisation.In rejecting the parent-entity concept the accounting standard-setters considered that it was inappropriate to classify the interests of outside shareholders,that is the non-controlling interests,as liabilities because their claim on the net assets of a subsidiary is not of the nature of a liability.
For more information refer to 'Alternative consolidation concepts'.

Discuss the Reason for Recognising Non-Controlling Interests as Part of Equity,rather

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Correct Answer:
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Discuss the Reason for Recognising Non-Controlling Interests as Part of Equity,rather

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Correct Answer:VerifiedShow Answer

Correct Answer:
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