Minority Interest

What is Minority Interest?

Minority Interest represents the prorated share of minority shareholders from net assets or equity of partly owned subsidiaries of a company. Minority interest is the effect of fully consolidating partly owned subsidiaries and signifies the claim of other investors to its net assets.

What does Minority Interest include?

Minority Interest includes:

• Dividends in arrears on a subsidiary's preferred stock, not owned by a parent company;
• Minority Interest/Non-Controlling Interest, even when reported in the asset side of a Balance Sheet;
• Minority Interest share in capital and reserves;
• Minority Interest share in profits/losses of the current year (when reported on a Balance Sheet);
• Preferred shares of a subsidiary company not owned by a parent company (minority owned), or when a parent company is not responsible for paying dividends on these shares; and
• General partner interests (units).