Noncontrolling Interest
Noncontrolling Interest (NCI) is the portion of a subsidiary's equity not owned by the parent company, representing the stake held by outside investors. It is shown as a separate equity component in consolidated financial statements.
Example: Example: If Company A has 80% ownership of Subsidiary B and outside investors hold 20%, the 20% is shown as Noncontrolling Interest. If Subsidiary B reports net income of $100,000, the portion attributable to NCI is $20,000 in the consolidated statements.
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