What is minority interest in SAP FI-LC - Consolidation?

SAP Term: minority interest

• Component: FI-LC

• Component Name: Consolidation

• Description: The portion of an FS item's value that belongs to a company that is not controlled by the corporate group. Minority interest is computed during consolidation of investments and is stated on separate items in the consolidated financial statements. The system performs the following computations: Minority interest in equity capital - The amount is derived from the equity of proportionally consolidated companies or subsidiaries, and is stated on the liabilities side of the balance sheet either as a single accumulated figure or as separate figures differentiated by the equity's breakdown into common 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 share of the investor company. Minority interest in investments is a characteristic of simultaneous consolidation and can be disclosed with minority interest in equity capital.

Smart SAP Assistant

• Key Concepts: 
  Minority interest is a term used in the Financial Consolidation component of SAP. It is the portion of a subsidiary's equity that is not owned by the parent company. This portion is usually owned by other investors or shareholders. The minority interest is reported as a separate line item on the parent company's consolidated balance sheet. 
  
  How to use it: 
  In SAP, minority interest can be tracked and reported using the Financial Consolidation component. This component allows users to consolidate financial data from multiple subsidiaries into one consolidated financial statement. The minority interest can be tracked and reported separately from the parent company's equity. 
  
  Tips & Tricks: 
  When tracking minority interest in SAP, it is important to ensure that all subsidiaries are included in the consolidation process. This will ensure that all minority interests are accurately reported on the consolidated balance sheet. 
  
  Related Information: 
  For more information on minority interest and how to track it in SAP, please refer to the Financial Consolidation documentation provided by SAP.