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Hi,
I would like to know the basis for reducing the investment in the associate amount as well as the Group’s retained earnings with the dividend received.
My understanding prior to now was that the cash account will be debited with the dividend received and retained earnings credited with the same amount as the amount constitutes an income to the Group.
‘Wande.
Associate = cost + share of associate’s RETAINED profit
And, in the P&L – share of A’s PBT
and, in OCI, – share of OCIEnd of knowledge! Bear in mind that you won’t be asked to do a full consolidation – just to find a couple of numbers.
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