Where is non-controlling interest shown in consolidated financial statements?

• A. As a liability
• B. In the equity section as a separate line only
• C. As a separate component of equity and in the consolidated net income attributed to NCI
• D. Not disclosed in consolidated statements

Answer: (C)

Non-controlling interest represents the portion of a subsidiary owned by other shareholders, not by the parent. In consolidated financial statements this interest is shown as a separate component of equity in the balance sheet, reflecting the ownership rights of those other shareholders. At the same time, the consolidated income statement presents the group’s total profit but includes a line for the portion of net income attributable to non-controlling interests, so readers can see how much profit belongs to those minority owners. This dual treatment—as a distinct equity item and as a share of consolidated net income—keeps the parent’s control and the minority interest clearly visible.