Final answer:
Non-controlling interest (NCI) is listed in the equity section (option c) of consolidated financial statements, representing the share of equity owned by minority shareholders in the subsidiaries not fully owned by the parent company.
Step-by-step explanation:
The non-controlling interest (NCI) appears on consolidated financial statements within the equity section. NCI represents the ownership of minority shareholders in the subsidiaries of the parent company.
When a parent company owns more than 50% but less than 100% of a subsidiary, the remaining share of the equity that is not owned by the parent is reported as non-controlling interest in the consolidated balance sheet. It signifies that not all of the subsidiary's net assets and net income are fully attributable to the parent company.
Furthermore, NCI is also involved in the allocation of net income, where the portion of the subsidiary's income attributable to the non-controlling shareholders is recorded under equity, separate from the parent company's retained earnings. Although additional disclosures about non-controlling interest may be provided in the notes to the financial statements, the actual recording is in the equity section.