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Well Explained
Well explained. Thank you Sir
Don’t we pro rate the dividend income from subsidiary ? Since we have acquired the sub mid way through the year. Doesn’t that make us entitle to only 6m dividends which then are deducted in adjusting the investment income ?
No – who ever owns the share(s) on the date they go ex-dividend is entitled to the whole amount of dividend per share that has been declared and approved.
Dividend income occurs at a point in time not over time like revaluation gain, as such it is purely based on shareholding% in the company. Date of acquisition for dividend income is quite irrelevant for consol.