Deloitte
Accounting Research Tool
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Chapter 1 — Overview

1.4 Initial Recognition and Measurement of Noncontrolling Interests

1.4 Initial Recognition and Measurement of Noncontrolling Interests

Since a noncontrolling interest represents the portion of a subsidiary that is not attributable to its parent, it is typical for noncontrolling interests to be recognized for the first time upon the occurrence of any of the following:
  • The initial consolidation of a subsidiary not wholly owned by the parent.
  • The parent’s sale of shares in a wholly owned subsidiary over which the parent retains control after the sale.
  • A subsidiary’s issuance of additional ownership interests to third parties, resulting in the dilution of the parent’s ownership interest while the parent still maintains control.