naveenbharathraj

 Profile Answers by naveenbharathraj Questions by naveenbharathraj

• Jan 3rd, 2008

 

          Firstly we have to understand the meaning of Holding company &Subsidiary company.

Holding Company is those Company who holds majority (51%of share)or more than that of another Company is called as Holding company. And the company the shares of which are held is called Subsidiary Company.
      
           Holding company may not purchase all the shares of it's Subsidiary company when some of the shares of the Subsidiary company are held by outsider's  the interest of that Subsidiary company is known as Minority interest

       The Minority interest must be calculatged and shown on the Liability side of the Consolidated Banlance Sheet.



         By ,Naveenbharathraj

cashflow

 Profile 

• Jan 27th, 2008

 

Minority interest in business is an accounting concept that refers to ownership of a company (subsidiary) that is less than 50% of outstanding shares.

vasudeo007

 Profile Answers by vasudeo007 

• Oct 12th, 2008

 

Minority means lower than 50%.

Minority interest means the amount invested by minority.

Generally minority interest is never calculated. It is calculated only when one company takes other company over. Or in case of Mergers and amalgamations.

When there is major investor in the company he calculates the gains to him. The merged company also knows what it is supposed to pay to dominant company. But both these companies need to know what is the invested interest of the minority share holders.

So they calculate all dues to merging company and remaining amount is supposed to be the minority interest.