Hi, I have a question about minority interest in income statement when a company acquires another company (“Target”) (less than 100% acquisition). I’m not taking the exam. Just want to know actually. If there is an adjustment, such as SG&A of Target will decrease by xx%, which affects the tax expense, do I calculate the minority interest as: 1) Target’s adjusted net income x (1-xx%) or 2) Target net income x (1-xx%). Thanks…
i’d want to take the adjusted net income of the sub x (1 - ownership %) to get minority interest on the I/S if you consolidate… it’s the part of the subs income that the parent doesn’t get. i can’t see why you wouldn’t want to make an adjustment if something changes, right?
ic… ok thanks