Minority interest

It is a component of equity. Since it is the minority shareholders’ portion, does this mean that the minority interest account is actually like a contra account, in that it reduces equity (since you’ve already added 100% of the subsidiary to your financials)?

minority interest is a liability account in most cases. But IFRS allows you to show it as mezanine… however, it will reduce parent company SHE.

under gaap its part of stockholders equity…so am i correct to assume its impact is to actually reduce stockholders equity

GAAP allows the Mezanine I thought, not IFRS?

THanks for correction!.. yes Min interest will reduce SHE.

yes youre right jp. ifrs says to put in equity. gaap sas to put in equity, liab, or mezannine. so my question was if you are putting it in equity, will it reduce SHE. THe answer seems to be yes.