Could you please explain why in the consolidated statement of profit or loss we deduct ‘dividend income received from associate’ from other income? I simply know that it is because of removing the double counting, but couldn’t get the full point.
If we did not remove it then we would have the share of profit of associate and the dividend income in the SPL. As the dividend income received from the associate is paid from our share of the profits then we have two amounts of income from the same source, so need to remove the dividend income.