Series 79 practice questionmediumNon-Controlling Interest
Where does non-controlling (minority) interest typically appear in a company’s consolidated financial statements according to U.S. GAAP?
- AAs a liability on the balance sheet
- BWithin shareholders’ equity✓ Correct answer
- CAs a contra-asset account
- DNot reported in consolidated statements
Explanation
Why B — Within shareholders’ equity
Under U.S. GAAP, non-controlling interest is reported within equity on the balance sheet. It is not a liability or contra-asset and must be shown in consolidated statements.
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