# Non-controlling interest

> The share of a subsidiary's equity and profit that belongs to owners outside the group.

Source: https://finconsol.com/blog/glossary/non-controlling-interest/ (updated 28 October 2026)

## Why does it matter in a group?

When a parent owns less than all of a [subsidiary](/blog/glossary/subsidiary/), the group still consolidates 100 percent of its assets, liabilities, income and expenses. The outside owners' share of its equity and of its profit is then shown separately: in equity apart from the parent's own equity, and as a split of the profit for the year.[1](#src-1) It used to be called minority interest, though an outside holder can own more than half of a subsidiary's shares without controlling it.

## A small example

Zenvara owns 80 percent of Kestrelwick. Kestrelwick has net assets of GBP 5,000,000 and a profit of GBP 500,000. The non-controlling interest is 20 percent: 1,000,000 of equity and 100,000 of profit. The parent's share of profit is 400,000.

## Sources

## Sources

1. IFRS 10 [Consolidated Financial Statements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/), paragraphs 22 and B94.