Why is it important to report the noncontrolling interest on the face of the financial...
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Accounting
Why is it important to report the noncontrolling interest on the face of the financial statements?
Noncontrolling interest represents excess ownership of the parent company. Thus, this ownership must be displayed on the face of the financial statements because of the concept of full disclosure.
Noncontrolling interest represents the equity interest owned by stockholders other than the parent. Thus, stakeholders must be informed about the control of both the parent controlling interest and other stockholders noncontrolling fimerest
Noncontrolling interest represents the equity interest of greater than of the outstanding stock of an investee. Thus, the presentation of noncontrolling interest on the face of the financial statements informs stakeholders that there is outside interest in an investee.
Noncontrolling interest does not have to be reported on the face of the financial statements. US GAAP only requires the disclosure of noncontrolling interest in the financial statement notes.
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