Since it is an equity project, it can be reflected in the income statement and cash flow statement.
The income statement item is called minority shareholders' profit and loss, which is the current profit and loss; The cash flow statement reflects the cash flow with minority shareholders, which is generally reflected in fund-raising activities and investment activities.
When the parent company purchases some shares of its subsidiaries at non-book value, whether the minority shareholders' rights and interests in the consolidated balance sheet are priced at fair value or at book value depends on the theory adopted in compiling the consolidated statements.
Under the parent company theory, the consolidated accounting statements can only be valued at fair value if they belong to the parent company, while the net assets belonging to minority shareholders should be valued at book value, so minority shareholders' rights and interests are also valued at book value in consolidated assets and liabilities and listed as liabilities.
Under the entity theory, subsidiaries have become an inseparable whole of enterprise groups, and the economic resources of this whole are provided by majority shares and minority shares, which should be treated equally.
Therefore, the net assets of subsidiaries should adopt the same valuation basis, that is, they are all valued at fair value. At the same time, all the goodwill of the subsidiaries included in the parent company's purchase of subsidiaries should also be shared by minority shareholders. Under this theory, minority shareholders' rights and interests should be listed as a part of owners' rights and interests, but they can be listed in the schedule together with majority shareholders' rights and interests.