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Dividend from associate

This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.

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November 25, 2013 at 9:14 am #147717
hasanali95
Member
- Topics: 239
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When we have recorded a dividend from Associate in OCOE,is this what we do as the correct treatment
Reduce the investment in Associate working
Increase the Retained earnings by the dividend amount
Reduce OCOE as it previously was taken here
Right sir?
November 25, 2013 at 11:24 am #147737
MikeLittle
Keymaster
- Topics: 27
- Replies: 23215
In the investor’s records, Dr Cash, Credit Investment Income
In the group, ignore the dividend from the associate completely
If the parent has credited Other Components of Equity, the correction would be:-
Dr Other Components of Equity and Cr Investment Income
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