Income (Loss) Including Minority Interest

Category

Income Statement

Units

Currency

US-GAAP elements

ProfitLoss

Reference

Regulation S-X Rule 5-03.18 (Net income or loss); ASC 810

Source

Reported in SEC EDGAR filings (US-GAAP XBRL taxonomy)

Income (loss) including minority interest is the total after-tax profit or loss of a company and all the subsidiaries it consolidates, before any of it is divided between the parent's shareholders and the outside owners of partly owned subsidiaries. It is also called consolidated net income.

Minority interest is the older name for what US GAAP now calls noncontrolling interest. Subtracting the noncontrolling holders' share from this figure gives net income attributable to the parent, the number most people mean by net income.

When a company controls a subsidiary, ASC 810 requires it to consolidate 100 percent of that subsidiary's revenue, expenses, assets, and liabilities, even if it owns only part of the equity. SFAS 160, now part of ASC 810, changed the presentation. The consolidated income statement must show net income for the whole group, then split it into the portions attributable to the parent and to noncontrolling interests. Regulation S-X Rule 5-03 lists these as consecutive captions: net income or loss (18), followed by the amounts attributable to the noncontrolling interest (19) and to the controlling interest (20).

The XBRL element is ProfitLoss, the consolidated amount including the noncontrolling share. It includes both continuing and discontinued operations. It is typically the starting point of the indirect-method cash flow statement, because the group's cash flows cover all consolidated subsidiaries regardless of ownership.

For most companies the noncontrolling share is small and this figure is close to net income. It matters for companies that consolidate large partly owned entities, such as holding companies, master limited partnership structures, or firms with joint ventures they control. In those cases, profitability ratios for the parent's shareholders should use net income attributable to the parent. Enterprise-level measures, where the capital base includes noncontrolling interest, can reasonably use the consolidated figure.