Practical examples of reporting non-controlling interest examples in 2025

Why start with examples of reporting non-controlling interest examples

Standards like IFRS 10 and ASC 810 are clear on the principle: non‑controlling interest (NCI) is equity in a subsidiary not attributable to the parent. But when you open Excel, you need something more concrete than a principle. You need layouts, numbers, and wording you can copy, adapt, and defend in an audit.

That’s why the best examples of reporting non-controlling interest examples start with realistic ownership structures and walk straight through to the consolidated financial statements. Think of what follows as a set of working templates you can map onto your own group.

Example of a simple 80% acquisition with positive earnings

Let’s start with the cleanest case: ParentCo acquires 80% of SubsidiaryCo on January 1, 2025. Assume:

• Purchase price for 80%: $800,000
• Fair value of SubsidiaryCo (100%): $1,000,000
• Net assets at fair value: $700,000
• SubsidiaryCo profit for 2025: $100,000

Initial recognition of non‑controlling interest

Using the fair value method under IFRS 3 or ASC 805, NCI at acquisition is measured at the proportionate share of the subsidiary’s fair value:

• NCI at acquisition = 20% × \(1,000,000 = \)200,000

On the consolidated balance sheet at acquisition date, you’d see:

• Goodwill = (Consideration \(800,000 + NCI \)200,000) − Net assets \(700,000 = \)300,000
• NCI (equity) = $200,000

Income statement presentation

For the year ended December 31, 2025, SubsidiaryCo earns $100,000. In consolidation, you include 100% of that result in revenue, expenses, and profit before splitting it between the parent and NCI.

A simplified consolidated income statement extract:

• Consolidated profit attributable to:
  • Owners of ParentCo: $80,000
  • Non‑controlling interest: $20,000

This is one of the best examples of reporting non-controlling interest examples because it shows the core principle: report 100% of the subsidiary’s performance, then allocate profit at the bottom.

Equity presentation

At year‑end 2025, ignoring other movements, NCI in equity is:

• Opening NCI: $200,000
• Plus share of profit: $20,000
• Closing NCI: $220,000

In the consolidated balance sheet, NCI appears within equity, separate from equity attributable to owners of the parent.

Example of a 60% ownership with dividends and NCI cash flows

Now let’s move to a slightly messier scenario that better reflects real examples from listed groups.

Assume:

• ParentCo owns 60% of SubAlpha
• NCI owns 40%
• SubAlpha profit for 2025: $500,000
• SubAlpha declares and pays dividends of $300,000

Income statement

The consolidated income statement shows:

• Profit attributable to:
  • Owners of ParentCo: \(300,000 (60% of \)500,000)
  • Non‑controlling interest: \(200,000 (40% of \)500,000)

Again, 100% of SubAlpha’s revenue and expenses are included; the split only happens at the attribution line.

Statement of changes in equity

This is where many preparers trip up. Dividends paid by the subsidiary to NCI do not go through the consolidated income statement; they go directly through equity.

For NCI, the movement is:

• Opening NCI: say $1,000,000
• Plus share of profit: $200,000
• Less dividends to NCI: 40% × \(300,000 = \)120,000
• Closing NCI: $1,080,000

This example of reporting non‑controlling interest shows that:

• Subsidiary dividends to NCI reduce NCI equity.
• They do not affect profit attributable to owners of the parent.

Example of loss‑making subsidiary and NCI allocation

Real life is not always profitable. Consider ParentCo owning 70% of SubBeta, with NCI at 30%. SubBeta records a loss of $400,000 in 2025.

Under both IFRS and U.S. GAAP, you still allocate losses to NCI, even if it pushes NCI into a deficit, unless NCI has no obligation to fund further losses and the parent has absorbed them under the agreements.

Income statement extract

• Loss attributable to:
  • Owners of ParentCo: \((280,000)\)
  • Non‑controlling interest: \((120,000)\)

On the balance sheet, NCI might become negative if previous NCI equity was small. This is one of the more realistic examples of reporting non-controlling interest examples, because many groups have early‑stage or distressed subsidiaries.

Auditors will expect you to justify any decision not to allocate losses to NCI with reference to legal or contractual arrangements.

Example of step acquisition: from 40% to 70%

Step acquisitions are a favorite exam topic and a frequent real‑world headache.

Assume:

• ParentCo holds 40% of SubGamma as an associate (equity method).
• On July 1, 2025, ParentCo buys an additional 30%, reaching 70% and obtaining control.
• Fair value of the previously held 40% interest at the date of control: $400,000.
• Consideration for the additional 30%: $350,000.
• Fair value of SubGamma’s identifiable net assets: $900,000.
• NCI at acquisition (30%): $270,000.

Reporting NCI on acquisition

In a step acquisition, you:

• Remeasure the previously held 40% interest to fair value through profit or loss.
• Recognize goodwill as:
  • Consideration for new stake $350,000
  • Plus fair value of previously held interest $400,000
  • Plus NCI $270,000
  • Minus net assets $900,000
  • Goodwill = $120,000

NCI appears in equity at $270,000 on the acquisition date. Any subsequent profits or losses of SubGamma are split 70/30 between the parent and NCI.

This step‑acquisition case is one of the best examples of reporting non-controlling interest examples for illustrating how NCI interacts with goodwill.

Example of changes in ownership without losing control

A very common 2025 scenario: a parent sells or buys additional shares in a subsidiary but still retains control. Under IFRS 10 and ASC 810, these transactions are treated as equity transactions, not as disposals or business combinations.

Assume:

• ParentCo owns 75% of SubDelta; NCI owns 25%.
• Carrying amount of NCI in SubDelta: $500,000.
• ParentCo buys an additional 10% from NCI for $260,000, increasing ownership to 85%.

Accounting impact

You:

• Reduce NCI by the carrying amount of the 10% interest:
  • 10% ÷ 25% × \(500,000 = \)200,000
• Recognize the difference between consideration paid (\(260,000) and the reduction in NCI (\)200,000) directly in equity attributable to owners of the parent:
  • Debit equity (parent) $60,000

No gain or loss is recognized in profit or loss. This example of an ownership change shows how NCI is adjusted within equity rather than through the income statement when control is maintained.

Example of partial disposal that leads to loss of control

Now flip the scenario: ParentCo sells down and loses control.

Assume:

• ParentCo owns 80% of SubEpsilon; NCI owns 20%.
• Carrying amount of SubEpsilon’s net assets (including goodwill): $1,200,000.
• NCI carrying amount: $240,000.
• ParentCo sells 60% of SubEpsilon for $900,000, retaining 20% as an associate.

Key steps

When control is lost:

• Derecognize 100% of the subsidiary’s assets and liabilities.
• Derecognize NCI ($240,000).
• Recognize the fair value of the retained 20% interest.
• Recognize a gain or loss in profit or loss on disposal.

NCI disappears from the consolidated balance sheet because SubEpsilon is no longer consolidated. Instead, the retained 20% is accounted for under the equity method or at fair value, depending on the applicable standard.

This is one of the more advanced examples of reporting non-controlling interest examples because it shows how NCI exits the group when control is lost.

Example of NCI in a structured entity or SPV

Modern group structures often involve special‑purpose vehicles (SPVs) where outside investors hold a slice of the equity or residual interest. Think renewable energy projects, real estate JVs, or securitization structures.

Assume:

• ParentCo controls ProjectSPV through power over key decisions.
• Outside investors hold 30% of the residual equity.
• ProjectSPV generates profit of $10 million in 2025.

Even if the legal form is a partnership or trust, if ParentCo controls ProjectSPV, you consolidate 100% of its assets, liabilities, income, and expenses. NCI represents the 30% interest held by the external investors.

Income statement:

• Profit attributable to:
  • Owners of ParentCo: $7 million
  • Non‑controlling interest: $3 million

This type of structure is increasingly common in infrastructure and energy, making it one of the most relevant 2024–2025 examples of reporting non-controlling interest examples for practitioners.

Example of NCI in regulatory and disclosure practice

If you look at large U.S. and international filers, you’ll see consistent patterns in how they present NCI. The SEC staff has repeatedly reminded registrants that:

• NCI should be clearly labeled and not buried inside other equity.
• The attribution of profit or loss to NCI and to the parent must be shown on the face of the income statement.

You can find practical guidance in:

• The U.S. Securities and Exchange Commission’s Financial Reporting Manual (searchable via sec.gov).
• Educational materials from universities such as Harvard Business School’s accounting resources.
• Conceptual background on consolidation in resources from the Financial Accounting Standards Board (FASB).

While these are not step‑by‑step templates, they provide context that helps you interpret the real examples of reporting non-controlling interest examples in public filings.

Practical tips drawn from the best real examples

Looking across public company filings and audit firm guidance, some patterns emerge:

• Keep NCI visible: separate line within equity; separate attribution line in profit or loss.
• Reconcile NCI: a clear reconciliation in the statement of changes in equity makes reviews smoother.
• Watch loss allocations: document why NCI is or is not absorbing losses, especially if NCI has no obligation to fund deficits.
• Explain ownership changes: when NCI changes but control remains, use notes to explain the transaction and the hit to parent equity.

If you’re building your own templates, start from these examples of reporting non-controlling interest examples and adapt wording and layout to your jurisdiction and industry. Auditors and regulators care less about style and more about consistency, transparency, and alignment with IFRS 10/ASC 810.

FAQ: examples of non‑controlling interest reporting

Q1. What is a simple example of non‑controlling interest in the income statement?
A straightforward example is a parent owning 70% of a profitable subsidiary. You consolidate 100% of the subsidiary’s revenue and expenses, then at the bottom of the income statement you show profit attributable to owners of the parent (70%) and profit attributable to non‑controlling interest (30%).

Q2. Can you give examples of non‑controlling interest when the subsidiary is loss‑making?
Yes. If a parent owns 60% and the subsidiary records a \(1 million loss, you typically show a \)600,000 loss attributable to the parent and a $400,000 loss attributable to NCI. Unless contracts say otherwise, NCI absorbs its share of losses, even if that pushes NCI equity negative.

Q3. How do dividends paid to NCI appear in consolidated financial statements?
Dividends paid by a subsidiary to NCI never go through the consolidated income statement. They are shown as a reduction of NCI in the statement of changes in equity and as a financing cash outflow to non‑controlling interests in the statement of cash flows.

Q4. What is an example of NCI when the parent changes its ownership but keeps control?
If a parent increases its stake from 70% to 80%, the reduction in NCI and the difference between the price paid and the carrying amount of the NCI acquired are recorded directly in equity. No gain or loss goes through profit or loss as long as control is retained.

Q5. Where can I find real examples of reporting non‑controlling interest examples from public companies?
You can review annual reports and Form 10‑Ks filed with the U.S. Securities and Exchange Commission on sec.gov. Look for the consolidated financial statements and the notes on subsidiaries and non‑controlling interests; they provide detailed, real‑world layouts and wording you can benchmark against.