Calculation of non-controlling interest

When splitting the profit/loss Konsolidator considers any changes to ownership percentage during the year. This means that should the ownership interest have changed from 80 % to 90 % from one month to the next then Konsolidator uses 80 % when calculating the share of profit for the first month’s profit/loss and the 90 % for the next month (weighted ownership percentage).

When splitting the Equity Konsolidator calculates the non-controlling interest by taking the total equity of the shareholders of the company (before current profit/loss and any FX adjustments) and multiplying it by the non-controlling interests found in the group structure. Konsolidator also calculates and posts FX adjustments and profit/loss of the non-controlling interests.

To summarize there are differences in the calculation when it comes to the split of profit/loss and equity. Profit/loss is split based on the weighted ownership percentage and equity is split based on the ownership percentage at the end of the month (Balance date).

Our advice is always to use the system journals since this is time-saving.

Using system journals in relation to non-controlling will help you to have the correct weighted average during the year and Konsolidator will easily split equity based on ownership percentage.