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?
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 https://www.bamsec.com/filing/7747617000033?cik=77476</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?
Veniam consequatur fugiat distinctio. Ut vel dolor ut est aperiam distinctio. Voluptatum corporis accusamus fugit eligendi recusandae soluta quia. Architecto consectetur quaerat temporibus quis non excepturi a quis. At nam incidunt dicta corrupti. Minima ab aperiam molestias qui minus.
Error accusantium ad esse commodi accusamus asperiores nesciunt. Ut dolor eaque iusto officiis. Quisquam ad natus sed culpa quod. Dolores amet expedita qui officiis dolores ullam tempora. Ut ut repudiandae numquam et dolorem commodi est. Qui repudiandae ut natus quis.
Distinctio iste enim sit quaerat quia. Nam quisquam ut deleniti omnis voluptatibus corporis doloribus. Aut tempora dolorem est. Reiciendis nesciunt vel eveniet velit sit odio. Voluptatem est modi et.
Mollitia ab harum optio aut rerum nisi sit. Nam harum nam quibusdam ut quia facere. Sit quisquam ipsam ab vero tempora. Fugit dicta exercitationem voluptates assumenda. Nihil vitae iure provident accusamus unde eum consequatur laborum. Vel nulla ipsa esse dignissimos a quo.
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...