medium · Financial Accounting liabilities-bonds-payable
When a parent company consolidates a 70%-owned subsidiary, how are the subsidiary's revenues and the 30% non-controlling interest (NCI) handled in the consolidated financial statements?
- The parent adds its own 70% revenue share to income; the 30% NCI share is ignored entirely.
- Only 70% of the subsidiary's total revenues are proportionally included in the consolidated total.
- 100% of the subsidiary's revenues are included; NCI is shown as a separate component of equity.
- 100% of revenues are included; NCI is shown instead as a current liability owed to outside shareholders.
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