Can someone please help explain questions 26 and 30 from Reading 30? I am most confused on how the non-controlling interest of $320 gets included in equity for #26 but gets subtracted from assets in #30. The text of the EOC question is below the questions. Thank you.
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$320 is not the minority interest. It’s the investment in the associate firm. It is included under assets under the Equity method. It is absent in the Consolidation method (there may be goodwill instead). This example assumes no goodwill. Minority interest shows up under Shareholder’s Equity in the Balance Sheet using the Consolidation method. In the Equity method, you don’t have Minority interest in the balance sheet because the “Investment in X” line under non-current Assets only captures your investment in an associate.