Having a bit of trouble logically understand this concept.
Speaking of business combinations and acquisition method. When Parent acquires let’s say 80% of target company - parents equity account wont’ be adjusted just a minority interest will be listed as separate component of stockholder’s equity
Minority interest is equal to the proportion of the company that parent does not own - in this case a minority interest should be listed at 20% of net equity of subsidiary
My question is why is that? Why list on BS of Parent, something Parent does not own?
I memorized this definitions but can’t completely logically understand this.