CFA Level I · CFA Level I Exam · Analyzing Income Statements
A company's profit attributable to owners is 120, and 10 of profit is attributable to non-controlling interests. The company's income statement most likely presents the 10 as:
The 10 is presented as an allocation of total profit for the year. Consolidated profit of 130 is split between the parent's owners (120) and non-controlling interests (10); it is not an expense and does not reduce profit before tax.
- Aa deduction in arriving at profit before tax.
- Ban allocation of total profit for the year.Correct
- Can operating expense within selling and administrative costs.
Explanation
Under IFRS, consolidated profit for the year is 130 and is then allocated between owners of the parent (120) and non-controlling interests (10). It is not an expense or a pre-tax deduction.
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