Calculating the Minority Interest (MI)in the Operating Profit and Opening

question 3

Multiple Choice

Calculating the minority interest (MI) in the operating profit and opening retained earnings of a subsidiary is done by:

• A) Taking the operating profit and opening retained earnings figures of the subsidiary and multiplying them by the percentage ownership held by the MI.
• B) Adjusting the operating profit and opening retained earnings of the subsidiary for any intragroup transactions and multiplying them by the percentage ownership held by the MI.
• C) Adjusting the operating profit of the subsidiary for any unrealised profit or expense of the subsidiary as a result of any intragroup transactions and multiplying both this and the opening retained earnings by the percentage ownership held by the MI.
• D) Adjusting the opening retained earnings and the operating profit for any unrealised profit or expense of the subsidiary as a result of intragroup transactions and multiplying this by the percentage ownership held by the MI.
• E) None of the given answers.

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Definitions:

Interpretation

The process of explaining the meaning of something; in psychology, often referring to the analysis of dreams, actions, or thoughts.

Dream

A succession of images, ideas, emotions, and sensations that usually occur involuntarily in the mind during certain stages of sleep.

Transference

The process by which emotions and desires originally associated with one person are unconsciously shifted to another person, especially in psychoanalysis.

Counterconditioning

A therapy method that involves teaching the patient to replace a negative response to a stimulus with a positive one.