Noncontrolling Interest
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Get it written →Debate 16-1 Noncontrolling Interest
In its 1995 exposure draft, Consolidated Financial Statements: Policy and Procedures, the FASB proposed that a companys outside interest (noncontrolling interest) be reported as an element of stockholders equity. Current practice now requires that noncontrolling interest be reported in stockholders equity but separate from equity belonging to the parent company. This practice differs from IAS No. 27, which requires that noncontrolling interest be presented above stockholders equity, as well as from the majority of current practice that conforms to the international requirement.
In your arguments for the following debate, you should consider the conceptual framework and be grounded on a theory of consolidation (entity theory or parent company theory).
1. Argue in favor of presenting the noncontrolling interest outside of stockholders equity.
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