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- 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)
is highly prescriptive and contains multiple policy elections. For these reasons,
accounting for noncontrolling interests is a particularly challenging aspect of U.S.
GAAP.
The guidance in this Roadmap presumes 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 A
Roadmap to Consolidation — Identifying a Controlling Financial Interest.
While classification of equity interests is outside the scope of this publication,
readers may refer to A Roadmap to Distinguishing Liabilities From Equity for
extensive guidance on such matters.