NCI in the ledger

[JBHF]

Hi Everyone
I have a question about elimination entry when involving non-controlling interest. I just want to verify my understanding about the booking model.

My company invested fund into a start-up (let's call it smallcorp) and it acquires 51% of the company share. Let's say the amount invested is $100 (in cash).

I understand that, I need to eliminate the equity of smallcorp, and because the ownership is 51%, then below entries reflect the flow.

Initial recognition:
From parent
DR Investment in Smallcorp $100
CR cash $100

From smallcorp
DR cash $100
CR share capital $100

From elimination entity (notional entity set up for elimination purpose)
DR Equity of SmallCorp $100 (eliminate equity of smallcorp)
CR investment in smallcorp $100 (offset blc from patent)
.
So how do we account for the NCI? Can anyone advise the correct journal entry?

[Leo]

The problem comes from the share capital. There are plenty of examples on the internet...

[Marek Muc]

you've zoomed in too much, start with consolidating all assets and liabilities and see where this takes you

[JBHF]

Hi Marek, we only need to eliminate the equity components of the subsidiary, right? If I include the asset and liability of the sub into the picture, what difference does it make?

[JBHF]

How about below, is that correct?

DR Equity of SmallCorp $100
CR investment in smallcorp $100
CR NCI $41
DR Goodwill $41

[Marek Muc]

If I include the asset and liability of the sub into the picture, what difference does it make?

It'll help you see the big picture and better understand NCI