Managing the financials of a complex group structure can be challenging, especially when ownership percentages vary across subsidiaries. To make this process more intuitive and accurate, BrizoSystem has introduced a powerful new feature that allows users to define ownership percentages for each organization within their group. This feature automatically calculates Non-Controlling Interest (NCI) for both the Profit & Loss (P&L) statement and the Balance Sheet (BS), providing a more precise view of financial performance.
📊 What is Non-Controlling Interest (NCI)?
Non-Controlling Interest (NCI) represents the portion of a subsidiary not owned by the parent company. It reflects the minority shareholders’ equity in the consolidated financials, ensuring transparency and accurate representation of financial data.
🛠️ How It Works in BrizoSystem
- Define Ownership Percentage: Set the ownership percentage for each organization in your BrizoSystem account. This is crucial for calculating accurate NCI and consolidated financial statements.
- Automated NCI Calculation: BrizoSystem will automatically calculate NCI for both P&L and BS based on the defined ownership percentage. This reduces manual effort and minimizes the risk of errors.
- Comprehensive Reporting: View the impact of NCI across your financial reports, ensuring you have a complete and accurate understanding of your group’s financial performance.
📈 Example Use Case
Imagine a parent company (Alpha Holdings) that owns 80% of a subsidiary (Beta Technologies). The remaining 20% is owned by minority shareholders. BrizoSystem will automatically calculate the NCI for both the P&L and BS, reflecting this ownership structure in your consolidated reports.
💡 Why It Matters
Defining ownership percentages and calculating NCI are essential for accurate financial reporting, especially for businesses with complex group structures. This feature ensures:
- Transparent financial statements
- Improved compliance with accounting standards
- Better insights for strategic decision-making
Upgrade your financial reporting with BrizoSystem’s latest feature and take control of your group’s financial data like never before. 🚀
Stay tuned for more updates as we continue to make BrizoSystem the ultimate consolidation tool for financial professionals. 👍