Income From Minority Interest

 

Income From Minority Interest is the income Company A earns from shares it owns in Company B, so long as company A owns less than 50% of company B.

Once a company owns more than 50% of another company, it can count it's portion of the other company's revenue, income, etc. as its own.

It represents the equity interest of outside shareholders in consolidated subsidiaries. Minority interest can be found on the balance sheet between liabilities and shareholders equity section.

Example

If Company ABC purchased 5% of Company XYZ. ABC would be entitled to 5% of XYZ's earnings. Income From Minority Interest will depend on the percentage of the company’s voting stock ABC owned.

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