Minority Interest

Q & AMinority Interest
Soon Huat Ku asked 4 years ago

Hi KC, Peter and everybody, I would to ask: 1.what is difference between minority interests that appear in annual income statement and balance sheet for a company(Shareinvestor)? 2. what is the significance of it in our stock valuation

KCLau Staff replied 4 years ago

Sorry that we missed your question in the last webinar. We will talk more details about it in the coming webinar.

1 Answers
Peter Lim Staff answered 4 years ago

Hi Soon Huat,
Minority interest in income statement represents the proportionate income/loss of the minority shareholder’s interest, while the minority interest in balance sheet refers to the equity portion (which is the asset less liability of the minority interest). 
For stock valuation, we use “net profit available to ordinary shareholders” in income statement as well as “ordinary shareholder’s equity” in balance sheet as we’re ordinary shareholders. 
Examples are also given in the previous webinar.