Question

ASC Topic 810 requires the noncontrolling interest in net income to be reported on the consolidated income statement as:

1) A separate line item
2) Included in the parent company's net income
3) Excluded from the consolidated income statement
4) Cannot be determined

Answer 1

Noncontrolling interest in net income is reported on the consolidated income statement as a separate line item.

Step-by-step explanation:

ASC Topic 810 requires the noncontrolling interest in net income to be reported on the consolidated income statement as:

1. A separate line item
2. Included in the parent company's net income
3. Excluded from the consolidated income statement
4. Cannot be determined

The correct option is A separate line item. Noncontrolling interest represents the portion of a subsidiary's net income that belongs to shareholders who do not have controlling ownership.