Preface

We are pleased to present the 2023 edition of Noncontrolling Interests. This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance on noncontrolling interests. Appendix D highlights substantive changes made to the Roadmap since issuance of the 2022 edition.

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 810-101) 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 those 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.

We hope that you find this publication to be a valuable resource when considering the accounting guidance on noncontrolling interests.2 If you have questions or concerns, please contact a Deloitte partner listed in the contacts section of this publication.