Matt Jackson

Advanced Accounting
Noncontrolling Shareholders Rights Case
8/30/15

1) Noncontrolling rights are granted by contracts or laws and they allow

noncontrolling shareholders to block corporate actions. They also do not
require consolidation and allow them to use the equity method. Examples
include: Amendments, issuance or repurchase of equity interests, liquidation
of the investee, among others. (810-10-25-10)

2) Substantive participating noncontrolling rights are granted by contract or law

that allow the noncontrolling shareholders to participate in corporate actions
and would not force the investor to consolidate with the investee. (810-10-2511)
3) The corporate actions they are allowed to participate in involve the setting,
terminating, and selecting the management and their compensation, and
establishing operating and capital decisions of the investee. (810-10-25-11)
4) You have to assess whether the noncontrolling shareholders rights are
protective or participating rights. (Could not find on FASB, searched on
journalofaccountancy.com)