Question about non controlling interest
If you own 80% of a company, and that company has net income of 100, do you receive all $100 of the net income as a parent company, or do you only receive $80?
If you own 80% of a company, and that company has net income of 100, do you receive all $100 of the net income as a parent company, or do you only receive $80?
+470 | BOFA ALREADY TRYING TO COVER UP THEIR TRACKS | 63 | 2m | |
+230 | This is a dark day for Wall Street. | 24 | 5m | |
+222 | Bank of America - Juniors Strike to start Monday May 6th | 35 | 4m | |
+154 | Investment Banking US League Table YTD 2024 (FactSet) | 85 | 1s | |
+146 | Big Layoff at Barclays - 5/1/24 | 85 | 4h | |
+87 | “Americans just work harder” | 53 | 1d | |
+83 | Would comitting to ATL İB be stupid? Please give feedback. | 45 | 3d | |
+69 | Sleeping on Jefferies??? | 34 | 3s | |
+66 | A shitter's comprehensive guide to sophomore year recruiting | 7 | 1d | |
+60 | What's up with RBC nowadays? | 25 | 3h |
Career Resources
all in cash but net income would drop (non tax deductible) do to the NCI. you create a non controlling interest line under share holders equity.
so net income is down $20 which flows to the top of the CFS. add back $20 because you're not actually losing cash. On the balance sheet, under shareholder's equity, retained earnings is down $20 and non controlling interest is up $20 balancing out.
Can you explain why the company receives $100 in cash, but for their net income, it only reflects $80. Why is it like this?
I would've done it as: I/S: Net Income from Subsidiary +100, Net Income Attributable to NCI +20 --> Net Income +80 CFS: Net Income +80, Net Income Attributable to NCI +20 (the reason for this is because your statements are consolidated), Change in Cash = +100 B/S: Cash +100, RE +80, NCI +20 --> balanced
I would agree with this OP. Here's a good example from Pepsi's latest 10-Q
Can you explain why you subtract 20 from the net income? What's the point of doing that if you are actually receiving 100 in cash?
Dignissimos iusto vel voluptas asperiores earum accusamus. Alias quo quia magni quia rerum eaque nulla. Similique et exercitationem distinctio corporis ut illo sapiente.
Sit voluptates voluptates repellendus praesentium voluptatum modi sint. A rerum magnam nemo dolorem facilis similique. Nulla eveniet cumque quo fuga. Sit nemo nesciunt maiores facilis dolores architecto. Culpa sunt repellat incidunt aut et necessitatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...