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Minority interest (also known as Non-controlling interest) in business is an accounting concept that refers to the portion of a subsidiary corporation's stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is always less than 50% of outstanding shares, else the corporation would cease to be a subsidiary of the parent. Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owning company to reflect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is reported on the consolidated income statement as a share of profit belonging to minority shareholders.

Minority interest is an integral part of the enterprise value of a company. The converse concept is an associate-company.

Under IFRS the minority interest (non-controlling interest) is reported in the Equity section of the consolidated balance sheet. Under US GAAP, minority interest appears as a separate component in shareholders' equity.

If ABC Corp. owns 90% of XYZ inc, which is a $100 million company, on ABC Corp.'s balance sheet, there would be a $10 million liability in minority interest account to represent the 10% of XYZ Inc. that ABC Corp does not own.

Wonder what is Minority Interest? What is PAT after minority interest? What is Net Profit attributable to shareholders? Which is the actual profit shareholders of group receive?

Read more at : http://financenmoney.in/profit-after-tax-and-minority-interest/

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Q: What is Profit after Tax and Minority Interest?
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Related questions

What is the difference between net profit before tax and net profit interest and tax while calculating in cash flow suppose if you have income statement then which one is selected npbt or npbit?

Net profit before interest and tax amount is selected for cash flow from operating activities and after that interest and tax is deducted while net profit before tax means net profit is adjusted for interest already while net profit before interest and tax means net profit is not adjusted for interest as well as for tax.


Calculation of Profit After Tax Margin?

Gross Profit or Earning Before Interest and Tax (EBIT) Less : Interest Earning Before Tax (EBT) Less : Tax Net Profit or Profit After Tax (PAT)


What is PATMI?

PATMI is the acronym for Profit After Tax and Minority Interest. Imagine thr is a co. "A" and subsidiaries and works as a group. So when company A reports it will consolidate results of subsidiaries as well. Group Pat is Net profit of group. If co. "A" doesn't own 100% in subsidiaries means that 3rd party have minority interests in the groups profit. So the profit available to company A's shareholders after apportioning for minority interest is PATMI.


How do you record minority interest?

Minority interest (also known as Non-controlling interest) in business is an accounting concept that refers to the portion of a subsidiary corporation's stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is always less than 50% of outstanding shares, else the corporation would cease to be a subsidiary of the parent. Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owning company to reflect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is reported on the consolidated income statement as a share of profit belonging to minority shareholders.Minority interest is an integral part of the enterprise value of a company. Under IFRS the minority interest (non-controlling interest) is reported in the Equity section of the consolidated balance sheet. Under US GAAP, minority interest appears as a separate component in shareholders' equity.If ABC Corp. owns 90% of XYZ inc, which is a $100 million company, on ABC Corp.'s balance sheet, there would be a $10 million liability in minority interest account to represent the 10% of XYZ Inc. that ABC Corp does not own.Wonder what is Minority Interest? What is PAT after minority interest? What is Net Profit attributable to shareholders? Which is the actual profit shareholders of group receive?


Gross profit is equal to the?

Gross profit is profit before Selling, General and Administrative costs (SG&A), like depreciation and interest; it is the Sales less direct Cost of Goods (or services) Sold (COGS), Net profit after tax is after the deduction of either corporate tax (for a company) or income tax (for an individual).


How do you find the tax rate if you have the pre tax and after tax profit?

After Tax Profit = Pretax Profit * (1 - Tax Rate) Solve for Tax Rate Tax Rate = 1 - (After Tax Profit/Pretax Profit)


What is the expansion of PBDIT?

PBDIT stands for "Profit Before Depreciation Interest and Taxes" How to abbreviate "Profit Before Depreciation Interest and Taxes"? "Profit Before Depreciation Interest and Taxes" can be abbreviated as PBDIT.


What is post tax profit?

profit after tax


How do you calculate net profit percentage?

{Revenues-(Cost of Goods Sold+Operating Expenses+Other Expenses+Interest+Tax and Non Tax Expenses-Tax and Non Tax Income)/Revenues}*100 Or to put it simpler, you could use the equation; (net profit/turnover)*100


What is mean by pbildt?

"Pbildt" is an acronym for "profit before interest dep and tax." It is generally used in accounting and business.


What is the difference between operating profit and net profit?

Operating Profit is earnings BEFORE interest and taxes are deducted but AFTER overheads and other indirect costs are deducted from your Gross Profit. Once you have this Pretax Profit you deduct from your Operating profit any one off items and interest payable to arrive at Net Profit. It is then at this stage that tax is calculated and deducted from the Net Profit to arrive at Retained Earnings procedure - dividends So; Sales/Turnover - COGS/COS = GP - Expenses (but not 1 off/interest payments) = OP - 1 off items and interest = NP


Is tax is added in accounting profit or not?

1. Tax is a deductable item from accounting profit as tax is calculated on profit before tax amount to reach at profit after tax account which is also the net profit available for distribution to share holders of company.