The minority interest represents the outside share Minority Interest holders proportion of the Net asset of the subsidiary. In order to prepare a consolidated balance sheet, investment of the holding company is replaced by the assets and liabilities of the subsidiary company in full. The share of outsiders in the net assets is shown on the liabilities side under the heading minority interest. This share is also equal to the equity held by the outsiders. i.e,
Minority Interest = Equity held by outsiders.