I'm confused about the total stockholder's equity in a consolidated balance sheet with minority interest. Per Becker's book, minority interest is a portion of stockholder's equity. So the total stockholder's equity should include minority interest. Am I right? The question I have:

1) P owns 80% of S. P's SE is 80 immediately after consolidation. Minority interest is 20. How much is the total stockholder's equity?

2) Same situation, how much of S's net income should be accrued to P at year end?

Thanks everyone.

Please note that because of FIN 46R and SFAS 141R, the minority interest is now referred to as the noncontrolling interest.

Now, then, for your example:

Parent's income: Parent's NI+(sub income-excess amortization of fair value over book value)*80%

NCI income: (Sub income-excess amortization of fair value over book value)*20%

Ending NCI: Beginning NCI+NCI Income-NCI dividends

Consolidated R/E: Beginning R/E+Parent's income-dividends paid by parent

Hope that helps.

Zeratul wrote: Total consolidated S/E would equal Parent's S/E+NCI.

Thanks, that's exactly what I want to know because I saw a MCQ like this on Becker.