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hello john
i completed f3 watching ur lectures and now doing f7. i was revising thru the consolidated financial st. from f3 before referring to the f7 lecturesone question i had is how do we treat dividend when the subsidiary co. pay the dividend to the parent co…….what adjustment we need to made on Consolidated st. of financial position…..
because when subsidiary paid the dividend they put entry
Dr retained earning
Cr cashwhile the parent co will
Dr cash
Cr profit/loss st. (investment income)so while preparing balance sheet (Consolidated st. of FP)
if we reduct income investment of parent co from group retained earnings….as adjustment …….where else we shld show it then that income as its sitting on the cash balance of parent co.
should we also need to add the figure back to post-acquisition of subsidiary
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