Parent
Definition
A company that controls one or more other companies.
Why does it matter in a group?
A parent controls one or more other companies. A group can have layers. An intermediate parent such as Kestrelwick controls its own subsidiary while being a subsidiary of Zenvara itself. The company at the top is the ultimate parent, and it consolidates every layer, even where its effective ownership of a lower company is below 100 percent. Outside owners at each level make up the non-controlling interestNon-controlling interestThe share of a subsidiary's equity and profit that belongs to owners outside the group.Open the glossary entry.
A small example
Zenvara owns 80 percent of Kestrelwick, and Kestrelwick owns 75 percent of Marlowe Pte Ltd. Zenvara’s effective interest in Marlowe is 80 percent of 75 percent, which is 60 percent. Because Zenvara controls Marlowe through Kestrelwick, it consolidates 100 percent, with a non-controlling interest of 40 percent.