What is non-controlling interest in SAP EC-CS - Consolidation?

SAP Term: non-controlling interest

• Component: EC-CS

• Component Name: Consolidation

• Description: The portion of an item's value of a consolidation unit that is not controlled by the corporate group. Minority interest is computed during consolidation of investments and is recorded on separate items in the consolidated financial statements. The system supports the following calculations: Minority interest in equity capital The amount is derived from the equity of the subsidiary or joint venture company, and is disclosed on the equity side of the balance sheet either as a single accumulated figure or as separate figures broken down into the equity's elements capital stock, retained earnings and so on. Minority interest in annual net income Minority interest in investments This is the difference between the investment book value and the group investment value of an immediate upper unit. Minority interest in investments is a characteristic of simultaneous consolidation with group shares and is typically netted with minority interest in equity capital.

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• Key Concepts: 
  Non-controlling interest (NCI) is a term used in the SAP EC-CS Consolidation component to refer to the portion of a company's equity that is not owned by the controlling shareholder. NCI is also known as minority interest and is typically held by other shareholders or investors. NCI is important to consider when consolidating financial statements, as it affects the calculation of consolidated net income and equity. 
  
  How to use it: 
  In SAP EC-CS Consolidation, NCI is used to calculate consolidated net income and equity. The NCI amount is calculated by subtracting the controlling shareholder's equity from the total equity of the company. This amount is then added to the consolidated net income and equity figures. 
  
  Tips & Tricks: 
  When calculating NCI, it is important to consider any non-controlling interests that may be held by other shareholders or investors. This will ensure that the consolidated net income and equity figures are accurate. 
  
  Related Information: 
  For more information on non-controlling interest, please refer to SAP Help documentation on EC-CS Consolidation. Additionally, you can find more information on non-controlling interest in accounting textbooks and other resources.