Please assist with accounting discussion question. Thanks

Accounting
Tutor: None Selected Time limit: 1 Day

Must be 100% original work and make sense.  At least 4 to 6 sentences with reference.  Thanks

Suggest one (1) method of accounting for the income effects on the non-controlling interest that you consider most appropriate. Provide a rationale for your response.

Aug 2nd, 2015

Thank you for the opportunity to help you with your question! the solution is as such:


Equiy method is the most appropriate.The accounting for noncontrolling interests is based on the economic entity concept of consolidated financial statements. Under the economic entity concept, all residual economic interest holders in an entity have an equity interest in the consolidated entity, even if the residual interest is relative to only a portion of the entity (that is, a residual interest in a subsidiary). Therefore, a noncontrolling interest is required to be displayed in the consolidated statement of financial position as a separate component of equity. Likewise, the consolidated net income or loss and comprehensive income or loss attributable to both controlling and noncontrolling interests is separately presented on the consolidated statement of comprehensive income.


Please let me know if you need any clarification. I'm always happy to answer your questions.It was lovely helping you. in case of a wrong answer or doubt please discuss before taking any action, than you for your co operation.
Aug 2nd, 2015

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