# Non-Controlling Interest

*Accounting & Reporting — Finicade finance glossary*

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.

**Also known as:** minority interest, NCI

**Related terms:** [Consolidation](https://finicade.com/glossary/consolidation), [Shareholders' Equity](https://finicade.com/glossary/shareholders-equity), [Net Income](https://finicade.com/glossary/net-income), [Financial Statements](https://finicade.com/glossary/financial-statements), [Enterprise Value](https://finicade.com/glossary/enterprise-value)

Source: https://finicade.com/glossary/non-controlling-interest