Consolidated Financial StatementsMCQQuestion 5716 of 6
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What is the treatment of minority interest in consolidated financial statements?

Options

AMinority interest is shown as a liability
BMinority interest is shown as a part of equity
CMinority interest is shown as a revenue
DMinority interest is shown as an expense
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Correct Answer

✅ Option B — Minority interest is shown as a part of equity

All Options:

  • AMinority interest is shown as a liability
  • BMinority interest is shown as a part of equity ✓
  • CMinority interest is shown as a revenue
  • DMinority interest is shown as an expense

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Detailed Solution & Explanation

In consolidated financial statements, minority interest is shown as a part of equity, representing the share of the subsidiary's equity that is not owned by the parent company. This is in accordance with the accounting standards, which require that minority interest be presented separately within equity.
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