Non-Controlling Interest (NCI)

Definition

The equity in a subsidiary not attributable to the parent company, representing the ownership stake held by minority shareholders. Under IFRS 3 and ASC 805, non-controlling interests in a business combination are measured either at fair value (which results in full goodwill) or at the NCI's proportionate share of the acquiree's identifiable net assets (which results in partial goodwill). NCI is presented separately within equity on the consolidated balance sheet and is allocated its share of comprehensive income.