Income Statement– Minority Interest

When one company (the parent) controls another company (the subsidiary), the parent presents its own financial statement information consolidated with that of the subsidiary.

Each line item of the consolidated income statement includes the entire amount from the relevant line item on the subsidiary’s incomestatement (after removing any intercompany transactions).

If the parent does not own 100% of the subsidiary, it is necessary for the parent to present an allocation of net income to the minority interests.

Minority interests, also called non-controlling interests, refer to owners of the remaining shares of the subsidiary that are not owned by the parent.

The share of consolidated net income attributable to minority interests is shown at the bottom of the income statement along with the net income attributable to shareholders of the parent company.