Why isnt minority interest added back to the numerator in computing ROE? Net income is after deducting minority interest, but total equity (ROE denominator) includes minority + preferred + common.
I believe Minority Interest is deducted after NI to get OCI (Other Comprehensive Income). So NI actually does include Min Interest.
Including minority interest in equity is a fairly new concept , so I think its a matter of standard practice not having caught up with changing accounting rules.