Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 5 terms
The share of a subsidiary’s profit and of its net assets belonging to shareholders other than the parent — presented as a separate line in consolidated profit and separately inside consolidated equity.
The Ind AS name for what older accounts called minority interest, and it has two halves. Ignore the profit half and earnings per share is overstated; ignore the equity half and book value per share is.
The subtotal of consolidated equity belonging to the parent’s shareholders, before non-controlling interests are added to arrive at total equity.
The right denominator for book value per share, and for a return on equity whose numerator is profit attributable to owners. Mixing the two levels gives the flattering answer wherever the non-controlling share of profit is positive, and the pessimistic one where the partly owned subsidiary is losing money.
The purchase by a parent of the shares in a subsidiary held by others, where control was already held — accounted for as a transaction between owners, with the excess over the carrying amount of the non-controlling interest charged directly to equity.
No goodwill and nothing through profit. Earnings per share rises whenever the profit picked up beats the after-tax funding cost, which holds across a wide span of prices, and book value per share falls at any price above the carrying amount bought out — so neither movement is evidence that the price was sensible.
The part of consolidated profit for the period belonging to the parent company’s shareholders, after the share attributable to non-controlling interests has been separated out.
The numerator of earnings per share, by definition. Consolidated profit before the split contains money belonging to the shareholders of a subsidiary, and dividing that by the parent’s share count is how a 33-times stock gets quoted at 21.
The share of a subsidiary’s profit, and of its net assets, belonging to other shareholders.
The older name for what Ind AS calls a non-controlling interest. Compute per-share figures after deducting it — from profit and from equity both — or you overstate earnings and book value together.