# Subsidiary

> A company that is controlled by another company, its parent.

Source: https://finconsol.com/blog/glossary/subsidiary/ (updated 28 October 2026)

## Why does it matter in a group?

A subsidiary is consolidated in full, not in proportion to the group's ownership, as long as the parent has [control](/blog/glossary/control/). Its assets, liabilities, income and expenses are all added. The outside owners' share is then shown as [non-controlling interest](/blog/glossary/non-controlling-interest/). A subsidiary can itself be a [parent](/blog/glossary/parent/) of other companies lower in the group. Control is reassessed when the facts change, so a company can become a subsidiary, or stop being one, without the shareholding changing. Its figures should cover the same period as the rest of the group and follow the same accounting policies.

## A small example

Zenvara owns 80 percent of Kestrelwick. Kestrelwick earns a profit of SGD 50,000. The group includes all of it. SGD 10,000 (20 percent) is attributed to the non-controlling interest and SGD 40,000 to the owners of the parent.