Question 23Q

Question

Lebron Co. owns most but not all of the shares of its subsidiary Bryant Inc. Lebron reported net income of $124,700. The amount to be attributed to the noncontrolling interest in Bryant is $30,000. Indicate how Lebron will report the noncontrolling interest in its income statement.

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Answer

The non-controlling interest is deducted from the net earnings of the parent company.

1Meaning of Non-Controlling Interest

Non-controlling interest refers to the position where the parent company contains no control over the decisions made by the subsidiaries.

2Treatment of non-controlling interest

In the parent company's income statement, the non-controlling interest is deducted from the reported net income.

Income Statement (an extract)

Particulars	Amounts ($)
Net income	124,700
Less: Non-controlling interest	(30,000)
Net earnings available	94,700

22Q

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