X Company acquired 80% of the stock of Y Company and is preparing consolidated financial statements. It has measured the noncontrolling interest, representing the 20% that X does not own. Where will the noncontrolling interest appear on X Company's balance sheet?

Under equity head.

The non-controlling interest not acquired in the investment here 20% is called as minority interest.

This Minority interest is shown under the equity section of a company, it is not shown under the liabilities head of balance sheet, as this is the interest held by other people in our subsidiary which is a minor share.