NON-CONTROLLING INTERESTS IN CONSOLIDATED FINANCIAL STATEMENTS: ECONOMIC NATURE FROM THE IFRS PERSPECTIVE AND EXPERIENCES OF ENTERPRISES IN VIETNAM

Abstract

In corporate structure, non-controlling interest (NCI) is not a key indicator but is required to be presented in the consolidated report. Determining NCI can be difficult due to fluctuations in ownership ratios, exchange rate differences or complex contractual agreements, especially when applying automated accounting processes. IFRS 10 – Consolidated Financial Statements, considers NCI as a part of equity, reflecting the true economic nature instead of just as a debt. This study uses qualitative methods, combining analysis of IFRS and VAS standards with Vietnamese business experience to clarify the differences in approach and level of transparency when recording NCI.