[1] It is, however, possible (such as through special voting rights) for a controlling interest requiring consolidation to be achieved without exceeding 50% ownership, depending on the accounting standards being employed.
The reporting of 'minority interest' is a consequence of the requirement by accounting standards to 'fully' consolidate partly owned subsidiaries.
Full consolidation, as opposed to partial consolidation, results in financial statements that are constructed as if the parent corporation fully owns these partly owned subsidiaries; except for two line items that reflect partial ownership of subsidiaries: net income to common shareholders and common equity.
Some investors have expressed concern that the minority interest line items cause significant uncertainty for the assessment of value, leverage and liquidity.
It is no longer acceptable to report minority interest in the mezzanine section of the balance sheet.