Non-controlling Interest

Non-controlling interest (NCI) represents the ownership stake in a subsidiary company held by shareholders who are not part of the parent company. When a parent owns more than 50% of a subsidiary, it controls the company, but other shareholders may still own a portion. NCI reflects these minority shareholders' share of the subsidiary’s assets, liabilities, and profits. In financial statements, it is shown separately to accurately represent the portion of the subsidiary not owned by the parent, ensuring clear disclosure of ownership structure and financial position.