The noncontrolling interest in a subsidiary company is calculated at the end of a reporting period by multiplying the subsidiaries’ net income by the noncontrolling interest percentage.
A noncontrolling interest (NCI), or a minority interest, is a situation in which the shareholders own less than 50% of the outstanding shares and thus have no say in the decision-making process.
At the end of a reporting period, the NCI is calculated by taking the NCI percentage and multiplying it with the net income of the subsidiary. For example, if a minority partner owns 30% in the subsidiary, and the subsidiary’s net income is $ 2 million, the NCI will be $ 2 million multiplied by 30%, which is $600,000.
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