India Consolidated Balance Sheet

[Ashwath KJ]

While consolidating, what is the reason for the parent company to show Minority Interest as part of the shareholder's funds? If it's a liability, is it the parent who will settle their liabilities at the time of liquidation?

 

[rmladek]

It's not the controlling investor's liability. It is the ownership share of the non-controlling investor(s). If that entity is liquidated, the controlling inventor will not pay out the non-controlling investor(s). Instead, they will share the residual between themselves.