6.11 Adoption of a New Accounting Standard

If the adoption of a new accounting standard includes a transition adjustment that affects the equity of a subsidiary that the reporting entity controls but does not wholly own, the reporting entity should consider how the transition adjustment would affect the noncontrolling interest in the subsidiary. ASC 810-10-45-19 indicates that revenues, expenses, gains, losses, net income or loss, and OCI of a subsidiary not wholly owned by the parent should be attributed to both the parent and the noncontrolling interest holders. Therefore, it would be appropriate to attribute the transition adjustment to both the parent and the noncontrolling interest holders since the transition adjustment may have affected net income in the prior periods.