How to calculate non-controlling interest?
Understand the Problem
The question is asking for the method or process to calculate non-controlling interest in a company or financial context. Non-controlling interest refers to the portion of equity ownership in a subsidiary not attributable to the parent company.
Answer
NCI = (Net Asset Value) x (% of minority ownership)
The non-controlling interest (NCI) can be calculated using the formula: NCI = (Net Asset Value) x (% of minority ownership).
Answer for screen readers
The non-controlling interest (NCI) can be calculated using the formula: NCI = (Net Asset Value) x (% of minority ownership).
More Information
Non-controlling interest represents the minority shareholders' equity in a subsidiary that is not wholly owned by the parent company.
Tips
Common mistakes include incorrectly determining the percentage of minority ownership or using the wrong net asset value. Ensure accurate figures for precise calculations.
Sources
- Non-Controlling Interest: Definition, How It Works, and Example - investopedia.com
- Non-Controlling Interest (NCI) | Formula + Calculator - Wall Street Prep - wallstreetprep.com
- Calculate Non-Controlling Interest in Consolidations - ecapitaladvisors.com
