minority interest


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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

that part of a subsidiary company's listed SHARE CAPITAL which is not owned by the HOLDING COMPANY. Where the holding company owns more than 50% of the shares of a subsidiary company then it is able to control that company, but where it owns less than 100% of the shares then the minority interest of other shareholders in the subsidiary company must be recognized. In compiling CONSOLIDATED ACCOUNTS the claims of minority interests in certain group assets located in subsidiary companies must be recognized, and their entitlement to a share in the profits of subsidiary companies must be allowed for. See PREACQUISITION PROFITS.

minority interest

that part of a subsidiary company's issued SHARE CAPITAL that is not owned by the HOLDING COMPANY. Where the holding company owns more than 50% of the shares of a subsidiary company, then it is able to control that company, but where it owns less than 100% of the shares, then the minority interest of other shareholders in the subsidiary company must be recognized, in particular their entitlements to a share in the profits of subsidiary companies.
References in periodicals archive ?
Amplitude Surgical (Paris: AMPLI) announced on Friday the acquisition of the remaining minority interest (40%) in its Brazilian subsidiary.
The divestiture of Barrick's minority interest in Marigold is part of Barrick's ongoing portfolio optimization process to maximize free cash flow in line with the company's disciplined capital allocation framework.
VeriFone said that acquiring the remaining minority interest in VTS allows the company to further drive the rapid adoption of the payment systems within the transportation segment, particularly in international markets.
As a result of the complexity and the form of the FIE Rules and scarcity of information, many Canadian taxpayers (particularly investors holding minority interests) will likely make investments in NREs without knowing (or being in a position to demonstrate, if challenged) whether or not the NRE is a FIE.
Because the decedent held only a minority interest in class A stock, it was assigned the same per-share value as the class B stock.
5079 generally provides that a non-licensee may hold an interest in an accountancy firm, provided that such non-licensee holds only a minority interest, both voting and equity, and materially participates in the business of the firm.
will take a minority interest in the Dare group of companies.
The potential for the legal exercise of special minority shareholder rights could affect the discounts assigned to the minority interest.
Chairman of Media Central will be Steven Brill, founder of Brill's Content magazine and Contentville.com, whose company has a minority interest in the subsidiary.
( Lydian or the Company ), a gold-focused mineral exploration and development company, is pleased to announce that it has completed the acquisition of the remaining 5% minority interest (the Minority Interest ) in its subsidiary, Geoteam CJSC ( Geoteam ), pursuant to the terms of its previously announced option purchase agreement dated December 9, 2010 between Lydian and Hayk Aloyan.
TELECOMWORLDWIRE-2 April 2010-VeriFone announces acquisition of remaining minority interest in VeriFone Transportation Systems(C)1994-2010 M2 COMMUNICATIONS http://www.m2.com
Genesee & Wyoming (GWR) is looking into strategic options including the sale of a minority interest, Bloomberg's Gillian Tan and Scott Deveau report, citing people with knowledge of the matter.

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