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Group and subsidiary

This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.

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December 11, 2017 at 7:05 pm #422585
pericazemun
Participant
- Topics: 6
- Replies: 9
Dear sir,
If I can kindly ask you to help me understanding following challenge.
In case that ABC company has several subsidiaries that they control, however they do not consolidate them since ABC is part of parent company which consolidates ABC accounts.
How to treat eg dividend paid from subsidiaries to ABC in ABC accounts?
Like investment in associate?
Thank you in advance,
Petar
December 12, 2017 at 9:04 pm #422783
P2-D2
Keymaster
- Topics: 4
- Replies: 7065
Hi,
It would be treated as any normal dividend received in the individual accounts of ABC and then it would be eliminated on consolidation of the ultimate parent company accounts.
I doubt that you would see any thing like this in the exam though.
Thanks
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