RMontgomery

Here’s the logic.
This assumes the Acquisition method (last year known as the Consolidation method). You have a majority ownership with significant influence in the investee. You have consolidated all assets, liabilities, revenues, and expenses. However, someone owns a minority share in your investee, and you cannot book the total NI to equity because it is not all your’s. Thus, you create a single line item ‘minority share interest’ that reduces the investment to your proportionate share.