Corporate Accounting Essay Example | Topics and Well Written Essays - 2750 words

Corporate Accounting - Essay Example However, in 2013, another company was added to the list of subsidiaries. The reason for conducting the activities under different subsidiaries is to be able to allocate and utilize the resources properly. In addition to that, the company can target the market according to the products and services offered through the subsidiaries. The company can also monitor and evaluate financial performances of the subsidiaries distinctively. Moreover, with the activities distributed under different subsidiaries, the company is able to manage the operations throughout horizontal chain of authority. Had the company conducted all the activities under a single entity, it would have rendered the whole business process extremely complex. 5. No, minority or non-controlling interests have not been reported within Brickworks Limited’s balance sheet or income statement. This is precisely because minority interest is only recorded in case of ownership level of less than 50%. However, in case of Brickworks Limited, it has 100% and 50% ownership over its subsidiaries (Phillips, Libby and Libby, 2011). 6. Minority interest or non-controlling interest can generally be found under the non-current liabilities section of a company’s balance sheet. It represents a parent company’s ownership level of less than 50% over its subsidiaries. 7. Since Brickworks Limited does not have non-controlling or minority interests recorded in its financial statements, I have identified another company that has been assigned to my colleague. The company has minority interest recorded in its financial statements. I had a thorough discussion with my colleague regarding non-controlling interest. The discussion revealed that a non-controlling interest is a position that a particular entity holds over another company which does not give him any power to influence the way the held company is to be managed. This means that their ownership level is considerable insignificant, compared to the total number