minority interests

Minority interests refer to the ownership stakes of shareholders who do not have controlling interest in a subsidiary company. When a parent company owns more than 50% but less than 100% of another company's shares, the remaining ownership belongs to minority shareholders. These interests are accounted for in the parent company's financial statements to reflect the portion of the subsidiary's assets, liabilities, and profits that belong to the minority shareholders. Essentially, minority interests acknowledge that not all of the subsidiary’s value is owned by the parent, recognizing the rights of outside shareholders.