This video discusses the Balance Sheet account called Noncontrolling Interest. Noncontrolling Interest arises when one company purchases more than 50% but less than 100% of another company. The purchasing company is required to consolidated 100% of the target company’s assets and liabilities, yet it controls less than 100% of the target company. For this reason, a stockholders’ equity account called Noncontrolling Interest is created to represent the claims of the minority shareholders against the target company. The video provides an example to demonstrate how the amount of the noncontrolling interest figure is calculated by determining the imputed value of the target company and then multiplying the imputed value by the minority shareholders’ ownership percentage.