Consolidation, Noncontrolling Interests, ASC 810

Noncontrolling Interests (NCI)

SFAS 160 amended ARB 51 in December 2007
ARB 51 was issued in 1959

SFAS 160, December 2007
“Noncontrolling Interests in Consolidated Financial Statements� an amendment of ARB No. 51”

ARB 51, August 1959
“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

Presentation and disclosures
–> are applied to all periods presented

Noncontrolling interests (NCI)
–> presented within 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

After SFAS 160
–> NCI can have a deficit balance
–> All losses attributable to NCI
–> are charged to NCI