Minority interest

How do we calculate minority interest? A cookie for anyone with the best answer.

[1-(parent’s ownership interest)] x net income (for the income statement) Please hold off for a couple of months (say mid-August), and then mail my cookie to: Skillionaire Level III Forum USA

Under the consolidation method, Asset(total) = Asset(Parent) + Asset(Subsidiary) - Cash investment Does the Minority Interest come into account in this equation?

I want to see the cookie first before I answer. What kind of cookie are we talking?

skill nailed it. For starting Minority Interest on Consolidation take shareholder equity of firm you bought*part you dont own

reg Wrote: ------------------------------------------------------- > Under the consolidation method, > > Asset(total) = Asset(Parent) + Asset(Subsidiary) - > Cash investment > > Does the Minority Interest come into account in > this equation? Nope, it doesn’t. You’d better pray you have two cookies.

I want both of them. -Skillionaire aka The Cookie Monster aka Mind Like Water

so when do we need Minority Interest (calculated from balance sheet)?

“so when do we need Minority Interest (calculated from balance sheet)?” I’d kind of default to when they ask me for it, but that’s just me. All sarcasm aside, I don’t believe that you need that as an input for any formula, offhand - pretty much a “standalone”.

Read the replies. Minority Interest is used in the consolidation method when calculating Net Income.

Love the replies. You can all have brownie… points!

Remember to differentiate between USGAAP and IFRS calcs for minority interest. I believe USGAAP take book value but the rest of the world looks at fair value.

Watters Wrote: ------------------------------------------------------- > Remember to differentiate between USGAAP and IFRS > calcs for minority interest. I believe USGAAP take > book value but the rest of the world looks at fair > value. To add to that: Old GAAP - Proportionate sharexBV of Net Assets IFRS - Proportionate sharexMV of Net Assets New GAAP - Proportionate sharexImplied fair value of subsidiary