In the previous chapter it says intra-company dividends should be completed removed. In this example the P&L shows investment income 10 million for Pip and the notes say Posy paid a 10 million dividend. Therefore should it not be removed entirely? Making the group investment income figure nil?
J
junqueirapaulo·
I believe what should be removed from the CSPL is the dividends paid from S to P as it is an intra-company dividend. In this example would be the 8m remaing from (W3).
P
P2-D2Tutor·
Hi,
If Posy paid a dividend of 10 million then Posy would have recorded its share of it at 80%, which is the 8 million that is then eliminated.
If Posy paid a dividend of 10 million then Posy would have recorded its share of it at 80%, which is the 8 million that is then eliminated.
Thanks