Which type of interest is reflected in the consolidation of group accounts?

The correct answer is non-controlling interest. In the context of consolidation in group accounts, non-controlling interest represents the portion of equity in a subsidiary not attributable to the parent company. When preparing consolidated financial statements, it is essential to account for non-controlling interests to accurately present the interests of all stakeholders in the group.

This inclusion ensures that the financial performance and position of the entire group are reflected fairly, acknowledging that certain shareholders in the subsidiary may hold stakes that do not contribute to the parent company’s ownership percentage. Consolidated financial statements combine the financials of both the parent and its subsidiaries, and the non-controlling interest is shown within equity in the consolidated balance sheet, distinguishing it from the parent’s controlling interest.

By doing so, the statements provide a clear picture of how profits, assets, and liabilities are shared among those who have invested in the overall group and allows users of the financial statements, such as investors and creditors, to see the completeness of the financial position and results of the entity.

Other choices, such as controlling interest or minority interest, while relevant to the conversation, do not encompass the concept of the total current equity held by non-controlling shareholders. Investors' contributions are also not specific to the framework of consolidation