Accounting Research Tool
Chapter 1 — Overview

1.6 Changes in a Parent's Ownership Interest

1.6 Changes in a Parent’s Ownership Interest

Changes in a parent’s ownership interest in a subsidiary after the initial recognition of noncontrolling interests trigger the need to “rebalance” the equity accounts reported on the parent’s consolidated balance sheet between controlling and noncontrolling interests. Decreases in ownership of subsidiaries may arise from transactions outside the scope of ASC 810-10 whose substance is addressed by other U.S. GAAP (see Section 7.1.1). Such transactions include, but are not limited to:
  • Revenue transactions (ASC 606).
  • Exchanges of nonmonetary assets (ASC 845).
  • Transfers of financial assets (ASC 860).
  • Conveyances of mineral rights and related transactions (ASC 932).
  • Gains and losses from derecognition of nonfinancial assets (ASC 610-20).