mittetkontrolliva

Mittetkontrolliva is an Estonian term that translates to "non-controlling" or "non-governing." It is primarily used in the context of business and finance, particularly when discussing shareholdings or ownership structures.

A non-controlling interest refers to the portion of a subsidiary's equity that is not owned by the parent company. If a parent company owns less than 50% of the voting shares of another company, it typically does not have a controlling interest and the other company is not considered a subsidiary. However, control can also be established through other means, such as having the ability to appoint the majority of the board of directors or having significant influence over the company's financial and operating policies.

In accounting, if a parent company has a controlling interest, the financial statements of the subsidiary are consolidated into the parent company's financial statements. If there is a non-controlling interest, that portion of the equity and net income is presented separately in the consolidated financial statements, often labeled as "non-controlling interest" or "minority interest." This distinction is crucial for understanding the true ownership and profitability attributable to the parent company's shareholders. The term emphasizes the absence of dominant influence or command over the entity's operations and strategic decisions.