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Chapter 11 example 2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Chapter 11 example 2

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • April 23, 2016 at 6:59 pm #312402
    eliaslinus
    Participant
    • Topics: 37
    • Replies: 55
    • ☆☆

    Hi Sir,

    Why in Chapter 11, example 2, the $400 proposed dividends by Girts, have not been included in other comprehensive income of Maris CS of PL for their portion of 28% please?

    April 23, 2016 at 8:07 pm #312407
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Because Maris will account for the 28% share of Girts’ post tax profit and Girts’ dividend will be deducted from that figure.

    Therefore, by taking 28% of profit after tax, Maris is automatically bringing in 28% of the dividend and 28% of the profit after dividend

    Is that OK?

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