Canada Acquisition accounting_opening balance sheet question

Joined
Aug 25, 2020
Messages
2
Reaction score
0
Country
Canada
if i'm buying 75% of a business with $250k in equity and $500k in debt, what's in 'Shareholder's Equity' on the balance sheet aside for the new equity of $250k? my question is specific to: how do i capture the 25% minority ownership on the balance sheet? Thanks
 
Joined
Aug 25, 2020
Messages
2
Reaction score
0
Country
Canada
Would the 25% be recorded as a minority investment on the liabilities side of the B/S?
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,455
Reaction score
334
Country
United States
This is from IFRS 10:22


Non-controlling interests (NCIs)

A parent presents non-controlling interests in its consolidated statement of financial position within equity, separately from the equity of the owners of the parent. [IFRS 10:22]
 
Joined
Feb 17, 2023
Messages
3
Reaction score
0
Country
India
This is from IFRS 10:22


Non-controlling interests (NCIs)

A parent presents non-controlling interests in its consolidated statement of financial position within equity, separately from the equity of the owners of the parent. [IFRS 10:22]
Hello
Could you help me in understanding how and why the minority stake is shown as a liability?
 

DrStrangeLove

VIP Member
Joined
May 27, 2022
Messages
184
Reaction score
31
Country
United States
Hello
Could you help me in understanding how and why the minority stake is shown as a liability?
It's not a liability; it's in the equity section, according to IFRS 10:22. A minority stake is contributed capital, not borrowed funds, that gives the contributor an ownership interest.
 
Joined
Feb 17, 2023
Messages
3
Reaction score
0
Country
India
It's not a liability; it's in the equity section, according to IFRS 10:22. A minority stake is contributed capital, not borrowed funds, that gives the contributor an ownership interest.
So while consolidating, minority interest is part of the shareholders funds? It's shown under equity to represent the minority's share in the group?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

Forum statistics

Threads
11,741
Messages
27,786
Members
21,733
Latest member
power star 07

Latest Threads

Top