Dividend received from associate

Hi, Any dividend received from the associate is removed on consolidation of the profit or loss and replaced by the share of profit of associate under equity accounting. If there is an outstanding receivable in the SFP then this is not eliminated as it is outside of the group. The only thing eliminated is the investment, which is then replaced by the investment in associate under equity accounting. Thanks

It means , we do not need to deduct it from investment income in consolidated sopl, rather than make adjustments in the share of profit of associate in sopl? By deducting the dividend of associate from there? And later on deduct the same from the sofp investment in associate (line item)? Is it?

Hi, Yes, we remove it (eliminate it) from the investment income and then replace it with the share of profit from associate. No adjustment is required to the investment in associate figure on the SFP. Thanks

Dear Sir, You mentioned "If there is an outstanding receivable in the SFP then this is not eliminated as it is outside of the group.", is this the "Dividends receivables from Associate" to the Parent? I have been wondering why this is not eliminated, what is the difference between "Dividends receivable from Associate" in Income Statement and SFP? Thanks so much!

Hi, The difference is that the dividend income is being replaced with the share of profit of associate. On the SFP we have replaced the investment with the investment in associate all as part of equity accounting. The receivable balance is still shown in the accounts as it is a balance that is due from outside of the group, it is not eliminated. Thanks

Dear sir, What is the treatment of it, while making the Group Retained earnings??

Hi, There is no adjustment in the group retained earnings for it. We only adjust retained earnings for the share of post acquisition retained earnings of the associate and any share of PURP. Thanks