Required subscriptions
- US GAAP
This Roadmap provides Deloitte’s insights into and interpretations of the accounting
guidance on noncontrolling interests.
Although the accounting principles related to noncontrolling
interests have been in place for many years, they can be difficult to apply. The
relatively brief guidance on nonredeemable noncontrolling interests (ASC 810-10) has
resulted in diversity in practice, while the guidance on redeemable noncontrolling
interests (ASC 480-10-S99-1 and ASC 480-10-S99-3A) is highly prescriptive and
contains multiple policy elections. For these reasons, accounting for noncontrolling
interests is a particularly challenging aspect of U.S. GAAP.
This Roadmap is written on the assumption that (1) a parent has
already established that consolidation of its subsidiary is appropriate under ASC
810-10 and (2) the equity interests of a subsidiary qualify for equity
classification under ASC 480. Consequently, this Roadmap should be viewed as a
companion publication to Deloitte’s Roadmap Consolidation — Identifying a
Controlling Financial Interest. While classification of equity interests is
outside the scope of this publication, readers may refer to Deloitte’s Roadmap
Distinguishing Liabilities From Equity for extensive guidance on such
matters.
The 2022 edition includes On the Radar, a section that briefly
summarizes key issues related to the accounting and financial reporting topics
addressed in the Roadmap. On the Radar is also available as a stand-alone
publication.