Noncontrolling Interests (NCI)
SFAS 160 amended ARB 51 in December 2007
ARB 51 was issued in 1959
ARB 51 was issued in 1959
SFAS 160, December 2007
“Noncontrolling Interests in Consolidated Financial Statements� an amendment of ARB No. 51”
“Noncontrolling Interests in Consolidated Financial Statements� an amendment of ARB No. 51”
ARB 51, August 1959
“Consolidated Financial Statements”
“Consolidated Financial Statements”
Effective date of SFAS 160
Fiscal years and interim periods within those fiscal years
–> beginning on or after December 15, 2008
–> earlier adoption is not allowed
–> beginning on or after December 15, 2008
–> earlier adoption is not allowed
Presentation and disclosures
–> are applied to all periods presented
Noncontrolling interests (NCI)
–> presented within equity
–> separately from the parent’s equity
–> separately from the parent’s equity
Consolidated net income
–> includes the NCI portion of net income
Consolidated comprehensive income
–> includes the NCI portion of comprehensive income
Before SFAS 160
–> Minority interest cannot have a deficit balance
–> Excess losses attributable to minority interest
–> are charged to the majority interest
–> Excess losses attributable to minority interest
–> are charged to the majority interest
After SFAS 160
–> NCI can have a deficit balance
–> All losses attributable to NCI
–> are charged to NCI
–> All losses attributable to NCI
–> are charged to NCI