In Reading a Set of Consolidated Financial Statements You Are

question 19

Essay

In reading a set of consolidated financial statements you are surprised to see the term noncontrolling interest not reported under the Stockholders' Equity section of the Balance Sheet.
a.What is a non-controlling interest?
b.Why must it be reported in the financial statements as an element of equity rather than a liability?

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Definitions:

Eating Disorder

A mental disorder defined by abnormal eating habits that negatively affect a person's physical or mental health, such as anorexia or bulimia.

Body Dysmorphic Disorder

A mental health disorder characterized by obsessive thinking about a perceived flaw in appearance, even if the flaw is minor or not observable to others.

Weight Loss

The reduction of the total body mass, due to a mean loss of fluid, body fat or adipose tissue, and/or lean mass.

Aerobic Exercise

Physical exercise of low to high intensity that depends primarily on the aerobic energy-generating process, such as running or cycling.