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How do we account for intragroup dividend

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › How do we account for intragroup dividend

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
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  • October 27, 2018 at 10:14 pm #479982
    jean989
    Participant
    • Topics: 29
    • Replies: 8
    • ☆

    Explain please intragroup dividend

    October 28, 2018 at 7:49 am #480005
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    Hi,

    The intragroup dividend is removed from the investment income of the parent as it is replaced with S’s income and expense on consolidation, and this dividend will have been paid out of these profits. If it is not removed then we are double counting the dividend in the consolidated accounts.

    Thanks

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