Minority Interest financial definition of Minority Interest. Minority Interest finance term by the Free Online Dictionary.

Minority interest

An outside ownership interest in a subsidiary that is consolidated with the parent for financial reporting purposes.

Minority Interest

1. A percentage of ownership in a company that is significant but does not give the owner the ability to control the company. In accounting, one includes only the dividends from a minority interest on a balance sheet, unless the owner has enough ownership to exert influence (but not outright control) over the company's direction. In that case, one includes both dividends and ordinary income on the balance sheet.

2. A liability on a parent company's balance sheet indicating the amount of a subsidiary that the parent company does not own. For example, if a parent company owns 95% of a subsidiary and the remaining percentage is publicly traded, the dollar amount of that 5% is recorded as a liability on the balance sheet.

minority interest

1. In accounting, the ownership by the parent company of less than 100% of an affiliated firm.

2. A proportional ownership of a firm that is insufficient to constitute control. Generally, minority interest is viewed as ownership of less than 50% of the voting shares.

Minority interest. All shareholders whose combined shares represent less than half of the total outstanding shares issued by a corporation have a minority interest in that corporation.

In fact, in many cases, the combined holdings of the minority shareholders are considerably less than half of the total shares.

In another example, in a partnership, any partner who has a smaller percentage than another partner is said to have a minority interest. Under normal circumstances, it is difficult for those with a minority interest to have any real influence on corporate policy.

Minority Interest

What Does Minority Interest Mean?

(1) A significant but noncontrolling ownership of less than 50% of a company's voting shares by either an investor or another company.

(2) A noncurrent liability that can be found on a parent company's balance sheet, representing the fractional proportions of its subsidiaries owned by minority shareholders.

Investopedia explains Minority Interest

(1) In accounting terms, if a company owns a minority interest in another company but has only a minority passive position (i.e., it is unable to exert influence), the only thing that is recorded from this investment are the dividends received from the minority interest. If the company has a minority active position (i.e., it is able to exert influence), both dividends and a percentage of income are recorded on the company's books. (2) If ABC Corp. owns 90% of XYZ Inc.,

which is a $100 million company, ABC Corp.'s balance sheet will show a $10 million liability in the minority interest account, representing the 10% of XYZ Inc. that ABC Corp. does not own.

Related Terms:
• Balance Sheet
• Dividend
• Long-Term Debt
• Net Operating Income—NOI
• Shareholders' Equity

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Affiliate Debt-to-Capital Ratio Enterprise Value Minority Shareholder net operating income NOI Partial Spinoff Participacion minoritaria Total Enterprise Value White Squire	Airlaid specialist Concert Industries, Vancouver, British Columbia, Canada, has acquired 100% of the minority interest in its European subsidiary Concert GmbH, Falkenhagen, Germany. Concert To Complete Purchase Of German Subsidiary by Nonwovens Industry This valuation did not reflect the fact that only a minority interest passed to D's spouse. Different values for the same stock in the same estate tax return by Josephs, Stuart R. / The Tax Adviser 81-253 was whether a minority interest discount should be allowed when valuing the transfer, either by gift or bequest, of a minority interest in a closely held family corporation to the donor's children. Valuation of minority discounts in closely-held companies by Hopson, James F.; Sheehy, William J. / The National Public Accountant	Minimo Minimo margen tolerado Minimo tabellare Minimum Down Payment Minimum Finance Charge Minimum Investment minimum lot area Minimum Maintenance Minimum Margin Minimum Price Contract Minimum Price Fluctuation minimum property requirements Minimum Purchases minimum rent Minimum Required Distribution Minimum Tax Minimum Tick Minimum-Variance Frontier Minimum-Variance Portfolio Ministry of Foreign Economic Relations and Trade Ministry of Health and Welfare Ministry of Posts and Telecommunications Minneapolis Grain Exchange minor Minor Bracket Minority Interest Minority Shareholder Minority Squeeze-Out Mint of Finland Mint of Norway Minus minus (m) Minus Tick Minutes MIP MIPS Mirror Fund Mirror Voting Mischkonzern Mise de fonds Mise de fonds intial Misery Index misfeasance Mismatch bond misrepresentation Miss the Price/Market Missing the Market Mission Statement Mississippi Bubble Mistura de produtos MIT	Minority Ethnic Recruitment Information Training and Support Minority Ethnic Women's Network Minority European Languages Information Network Minority Faculty Development Program Minority Faculty Fellowship Program Minority Female Single Parent Program Minority Franchisee Association Minority Front Minority game Minority group Minority group Minority group Minority Health Minority Health International Research Training Minority Health Professions Foundation Minority High School Apprenticeship Program Minority High School Student Research Apprentice Program Minority Homeschoolers of Houston Minority Human Resources Association Minority Initiative Advisory Panel Minority Innovation Challenges Institute minority institution Minority Institution/Cancer Center Partnership Minority Institutions Minority Institutions of Higher Education Minority Institutions Technology Support Services Minority Interest Minority International Research Training Minority Intervention and Kidney Education Minority Introduction to Engineering and Science Minority Investment Minority Investments Minority Language at Home minority leader Minority Leaders Fellowship Program Minority Legal Education Resources Minority Males in Engineering and Technology Minority Media and Telecommunications Council Minority Medical Education Program Minority Mental Health Research Program Minority Movement Minority Officer Recruitment Effort Minority On-Line Information Service Minority Organ and Tissue Transplant Education Program Minority Organ Donation Education Program Minority Organization of Architecture Art and Planning Minority Outreach Research and Education Minority Owned Business Minority Party Minority Party Minority Peoples of the North Minority Political Leadership Institute

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Affiliate
Debt-to-Capital Ratio
Enterprise Value
Minority Shareholder
net operating income
NOI
Partial Spinoff
Participacion minoritaria
Total Enterprise Value
White Squire

Airlaid specialist Concert Industries, Vancouver, British Columbia, Canada, has acquired 100% of the minority interest in its European subsidiary Concert GmbH, Falkenhagen, Germany.

Concert To Complete Purchase Of German Subsidiary by Nonwovens Industry

This valuation did not reflect the fact that only a minority interest passed to D's spouse.

Different values for the same stock in the same estate tax return by Josephs, Stuart R. / The Tax Adviser

81-253 was whether a minority interest discount should be allowed when valuing the transfer, either by gift or bequest, of a minority interest in a closely held family corporation to the donor's children.

Valuation of minority discounts in closely-held companies by Hopson, James F.; Sheehy, William J. / The National Public Accountant

Minimo

Minimo margen tolerado

Minimo tabellare

Minimum Down Payment

Minimum Finance Charge

Minimum Price Contract

Minimum Price Fluctuation