Non-Controlling Interest
/ˌnɒn kənˈtroʊlɪŋ ˈɪntrɪst/
Definitions
- (n.) A minority equity stake in a subsidiary company not sufficient to control management or operations.
The non-controlling interest held by outside investors must be reported separately in consolidated financial statements.
Forms
- non-controlling interest
- non-controlling interests
Related terms
See also
Commentary
Non-controlling interest highlights the separation of ownership rights from control, an important distinction in consolidation and financial reporting under accounting standards.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.