FAR Consolidations · Updated November 2026
Parent Owns 80%. Where Does the Other 20% Go?
Consolidation and ownership allocation are separate steps.
Consolidated activity
The consolidated statements generally include the subsidiary's applicable revenues and expenses rather than only the parent's ownership percentage.
Net income attribution
After consolidated net income is calculated, applicable income is attributed between the controlling interest and noncontrolling interest.
Balance sheet
NCI is generally presented as a component of equity in consolidated financial statements under U.S. GAAP.
Common trap
Do not reduce every subsidiary balance to 80% merely because the parent owns 80%.
The takeaway
Consolidate the subsidiary under the applicable rules, then allocate ownership between the controlling and noncontrolling interests.
Related Summit guides
FAQ
Does an 80% parent report only 80% of subsidiary revenue?
Not under ordinary consolidation presentation.
Is NCI part of consolidated equity?
Yes.
Can NCI receive a portion of subsidiary income?
Yes.