Accounting for Noncontrolling Interest ➡️ Walking through an Example

This video is a overview of noncontrolling interest activity when preparing consolidated financial statements under ASC 810. ASC 810 is the GAAP standard for the consolidation of business legal entities. Watch the Full Video ➡️ • Accounting for Non-con...
ASC 810-10-20 defines variable interest entities and non-controlling interest as the
portion of equity (net assets) in a
subsidiary not attributable, directly or
indirectly, to a parent.
Watch the full Consolidation Accounting Series ➡️ • Accounting and Finance...
Consolidation Accounting considerations to think through:
1) Why do you consolidate legal entities?👉 A larger business generally speaking is made up multiple entities which reflect a full economic entity.
2) What are you consolidating?👉 You are consolidating entities that are controlled through ownership and/or have the power to control an entity. Consolidation accounting reflects the total combined assets, liabilities, revenue and expenses along with eliminating any intercompany activity.
3) When do you consolidate financial?👉 There are various reasons to consolidate a full economic entity, but several include: financing, audits, equity raises, public company reporting, etc.
4) How do you consolidate business entities?👉 Follow ASC 810 which defines how a parent entity should consolidate controlling financial interest either by a voting interest or by variable interest.
👍Supporting resources:
➡️Equity Method Accounting - GAAP Accounting for Investments • Accounting for Equity ...
➡️Twitter Thread on Consolidated Financial Statements: / 1679913600259850262
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