Why Minority interest is reported in the Equity section within the balance Sheet ?
This was selected as Best Answer GAAP was silent regarding the balance sheet presentation of minority interests. Companies have chosen to present minority interest as either liabilities, a separate component of equity, or show it between liabilities and equity sections of the balance sheet (mezzanine). For fiscal years beginning on or after December 15, 2008, FAS 160 clarifies that the minority interest (“non-controlling interest”) should be presented as a component of equity. If the minority interest is reported in the equity section, I do not believe it is misleading to calculate the debt ratio including minority interest in equity.
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