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If there is dividend received from associate included in parent profit/loss under investment income, Is it consider as inter-group dividend where we need to move it out?
ThanksYes, because in working W3 (and also part of working W5) the group’s share of the associate is computed as:
Group share of
this year’s
associate
adjusted
time apportioned
profit after taxand that figure (profit after tax) is the amount from which the associate will then finance their dividend
So by taking the share of profit after tax, the calculation takes in the share of retained earnings AND the share of the dividend paid by the associate
Profit after tax –
(Dividend) =
Retained earningsOK?
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