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dividends from/to associate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › dividends from/to associate

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  • May 10, 2018 at 8:53 pm #451134
    millish23
    Member
    • Topics: 6
    • Replies: 3
    • ☆

    OK so as far as I understand it a dividend received from an associate reduces the investment in associate on the SOFP.

    But does a dividend paid to the associate increase the investment in associate?

    Thanks

    May 10, 2018 at 9:20 pm #451141
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    Why would you pay a dividend to an associate? You’ve made the investment in the associate and would therefore expect to receive the dividends, not pay them.

    Thanks

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