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Accounting & Reporting

Non-Controlling Interest

Also called: minority interest, NCI

Non-controlling interest is the portion of a subsidiary that the parent doesn't own, but must still consolidate in full. It's why a parent's revenue can include 100% of a business it owns 60% of, with the other 40% of profit deducted lower down. Ignoring it overstates what belongs to shareholders, and it's a routine source of error in valuation multiples.

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