Minority interest is the interest of minority shareholders in a company where more than 50% of the shares are owned by a holding company. Net After tax or other items have been deducted from the "gross" amount.
All shareholders whose combined shares represent less than half of the total existing shares issued by a company have a minority interest in that corporation. In fact, in many cases, the combined holdings of the minority shareholders are considerably less than half. In either case, in India it is difficult for minority shareholders, under normal circumstances, to have any real influence on corporate policy.
A minority interest represents a minority of shares not held by the holding company of a subsidiary. It means that the subsidiary is not wholly owned by the holding company. The minority shareholdings are shown in the holding company accounts as long term liabilities .
That part of a subsidiary company that the investing company does not itself hold, or control. If the company has an interest in 87% of the share capital of another company, then that other company is a subsidiary and 87% of its profits and assets will be featured in the consolidated accounts of the share owning company. The 13% not owned directly, will be featured in the consolidated accounts as a Minority Interest.
This appears on consolidated financial statements where the parent company's figures are combined with those of its subsidiaries. Even if the parent company owns less than 100% of a subsidiary's stock, all of the subsidiary's assets and liabilities are combined in the consolidated financial statements. To compensate, the part not owned by the parent company is minority interest and is shown as a liability on the balance sheet and deducted in the earnings statement.
Minority interest in business is ownership of a company that is less than 50% of outstanding shares. Revenue and expense from "minority interests" are sometimes reported on the income statement of the owning company. In the latter case, it is used to refer to the share of a company's profits (and assets) that belong to other shareholders in partially owned subsidiaries.