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Company A disposes of some of its share holdings in subsidiary B in Oct 2013, therefore making B an associate. B paid a dividend of x amount to its ordinary shareholders in February 2014. Y/e is 30th April 2014.
Now do I include a time apportioned parent’s share of the dividends paid after the part disposal to the consolidated profit or loss statement or ignore it because it happened after the part disposal?
Thanks
No, dividends from either a subsidiary or an associate are NOT shown in the group profit or loss because the parent takes account of the profit after tax and it’s from that profit that the dividend will be taken. By including our share of profit after tax (and therefore before dividend) we are automatically taking into consolidated profits our share of those dividends
OK?
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