If a parent company borrows money at an interest rate of six percent from its subsidiary, what effect (if any) will this have on the non-controlling interest? January 1, 2023 by admin This would have no effect on the non-controlling interest. The subsidiary would book its pro-rata share of any interest revenue. The non-controlling interest balance would be reduced by the amount of the loan. The subsidiary would record any interest revenue as an extraordinary gain. See Answer This would have no effect on the non-controlling interest.