Issued: July 26, 2013
Initially issued June 29, 2012
Impact: 2012 US GAAP, 2011 US GAAP, 2009 US GAAP


A number of companies have temporary equity in the form of redeemable equity to non-controlling interests.  As part of the US GAAP income statement, there are elements to represent net income attributable to non-controlling interests and income attributable to the consolidated entity and, in 2013, aggregate tags to represent Net Income attributable to redeemable equity. In the example below, the company has reported Net Income of $39,416 in 2011, which represents net income attributable to both redeemable and non-redeemable non-controlling interests.  The net income attributable to the non-controlling interest is $740.  This is comprised of net income attributable to non-controlling interests with redeemable and non-redeemable equity.  $407 of the net income is attributable to non-redeemable and $333 is attributable to redeemable.  Because the redeemable is temporary equity, it does not appear in the statement of shareholders’ equity.  However, the Net Income line item in the statement of shareholders’ equity has a value of $39,083 and the Net Income reported on the income statement is $39,416.  There cannot be 2 different values for the same tag, so a distinction needs to be made between these 2 items.

Figure 9. Redeemable Equity – Income Statement
Redeemable Non-controlling Interests 9

Figure 10. Redeemable Equity – Equity Statement
Redeemable Non-controlling Interests 10


Use the element NetIncomeLossIncludingPortionAttributableToNonredeemableNoncontrollingInterest which excludes the redeemable portion of net income attributable to non-controlling interest in the Statement of Shareholders’ Equity.

The calculation in the income statement in the case above would be unchanged and would be as follows:


NetIncomeLossAttributableToNoncontrollingInterest 740

NetIncomeLoss 38,676

The row in the Statement of Shareholders’ Equity represented as net income would be as follows:

NetIncomeLossIncludingPortionAttributableToNonredeemableNoncontrollingInterest 39,083

NetIncomeLossIncludingPortionAttributable… Retained Earnings 38,676
NetIncomeLossIncludingPortionAttributable… Parent 38,676
NetIncomeLossIncludingPortionAttributable… NCI 407

It is preferable that this element is used in the statement of shareholders’ equity rather than profit loss as profit loss can include portions of temporary equity.