Minority Interest from Subsidary

[Acid]

Hi

Why do we take the minority share of profit from the subsidarys profit after tax rather then the groups ( P + S ) Profits after tax?

Thanks in advance

Acid

[Asif]

to distinct , show separately the area which the group's right so that stakeholder understand. Like parents acquired 70 %,,, retained earning of subsidiary is 200 , so $ 140 is shown in retained earning , the rest $ 60 does not belong to the group though it controls. The 30 % i.e. the $ 60 is shown in minority interest just to show its separated.

Hope it helps , if not tell me

[siddharth]

Hi,

its a source of fund for the subsidiary only not to the group as a whole. So it is deducted from subsidiary profit after tax.

thanks.