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Hi sir, if dividends are received by an entity they should be presented as a investment income on the statement of profit or loss and should be added to retained earnings in the statement of changes in equity right ?
“should be presented as a investment income on the statement of profit or loss and should be added to retained earnings in the statement of changes in equity right”
It depends what you mean
Investment income is credited within the statement of profit or loss and eventually the bottom figure that represents profit after tax for the year is transferred through the statement of changes in equity, the dividend is deducted and the resultant figure is added to the retained earnings brought forward to give retained earnings carried forward
So, yes, in a way the “investment income on the statement of profit or loss and should be added to retained earnings in the statement of changes in equity right”
OK?
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