Non-controlling interest
On the BIWS guide NCI is defined as an ownership of more than 50% but less than 100%.
Investopedia says its less then 50%. My intuition tells me investopedia is correct. Which one is it?
And say i purchased 70% of a company using $100. How would this affect the three statements? 1. Income statement no change 2. CF - decrease in 100 from acquisition 3. BS - Cash down by 100; where would it balance on the L+SE side?
Thank you!
70% you will be consolidating the balance sheet and income statement. The owner of the 30% of the acquired company (minority shareholder) will then appear in your book as NCI.
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