NCI
Non-Controlling Interest
Short definition
Non-controlling interest (NCI) is the IFRS slice of consolidated equity not owned by the parent. It is the reporting name for minority interest; cash rights and valuation remain separate.
Detailed explanation
NCI is measured at fair value or at the share of net assets; goodwill is full or partial. Whether NCI is added in EV math changes the multiple.
Does covenant “equity” include NCI? If the bank pack is silent, D/E moves.
Why it matters for the CFO
If EBITDA is 100% consolidated and cash does not flow to the parent, the multiple and DSCR mislead. NCI dividends split group cash.
How to read it
Book NCI is not a proxy for the minority’s exit value. Puts/calls change classification and price.
Related calculators
Güven Sayılgan’s writing on this topic
The Core Messages of Financial Statements for Entrepreneurs
Entrepreneurs need not be accountants, yet they should be able to read the balance sheet, income statement, and cash-flow statement. These statements are fundam
3 min read
Read → FinansAn Exceptional Remedy Protecting Minority Shareholders against Persistent and Serious Abuse by the Majority: the “Exit Share Price”
The “exit share price” is an exceptional remedy protecting minority shareholders against majority abuse. An outline of the just-cause dissolution action and exi
5 min read
Read →Read these first
Related terms
What to learn next
Definitions are educational. They are not investment, credit or tax advice.