Consolidator Minority Interest Method

Use Consolidator Minority Interest Method when the amount of investment is between 50% and 100% of the company's stock. This method also rolls up output values. While 100% of the business unit is consolidated, these calculations recognize the outside interest in the business:

  • Minority interest percentage calculates as the difference between 100% and the ownership percentage in the Consolidator:

    MI% = 100% - ownership%

  • Minority Interest (v1720) on the Income Statement increases by the minority interest percentage times the subsidiary's after-tax net income (v1750 Net Income):

    Parent's v1720 = MI% x sub's v1750

  • Minority Interest (v2780) on the Balance Sheet increases by the minority interest percentage times the subsidiary’s Common Equity account (v2890):

    Parent's v2780 = (MI% x sub's v2890)

  • In the valuation adjustment for Minority Interest, SVA (v5.00.920) increases by the minority interest percentage times the investment's SVA value (v5070 Shareholder Value):

    Parent's v5.00.920 = Ownership% x investment's v5070

  • In the Valuation Adjustment for Minority Interest, EP (v5.00.930) increases by the minority interest percentage times the investment's EP value (v5790 Economic Profit Shareholder Value);

    Parent's v5.00.930 = Ownership% x investment's v5790