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In Reading a Set of Consolidated Financial Statements You Are

question 17

Essay

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


Definitions:

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The number of heartbeats per unit time, typically expressed as beats per minute (bpm).

Proximodistal

A pattern of physical and psychological development in humans where growth and skill acquisition starts from the center of the body and moves towards the extremities.

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The process of growth and change that organisms undergo over time, encompassing physical, cognitive, emotional, and social dimensions.

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A limb attached to the shoulder, extending from the shoulder to the hand, consisting of the upper arm, elbow, forearm, and wrist.

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