What does noncontrolling interest mean on the CPA exam?
Noncontrolling interest. The share of a subsidiary that the parent does not own. Reported inside consolidated equity, not as a liability.
Defined against ASC 810-10-45-16.
Which CPA exam sections use noncontrolling interest?
Noncontrolling interest appears in the FAR section of the CPA exam.
Other terms defined against ASC 810-10
- primary beneficiary: The party that must consolidate a variable interest entity: the one with power over its significant activities AND exposure to losses or returns that could be significant.
- variable interest entity: An entity that cannot fund itself without further support, or whose equity holders lack the usual powers.
Other names for noncontrolling interest
NCI
Related terms
- partnership interest: A partner's stake in the partnership itself, distinct from any interest in its underlying assets.
- outside basis: A partner's tax basis in the partnership interest itself.
- additional paid-in capital: Amounts received from shareholders above the par or stated value of the shares issued, reported as a separate equity caption.
- net position: A government's assets plus deferred outflows, less liabilities and deferred inflows.
- temporary difference: A difference between the tax basis of an asset or liability and its reported amount that will produce taxable or deductible amounts in future years.