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If in qs dividend received from associate is mentioned plus the profit after tax? What is the treatment in sofp and sopl .
Also, if the profit after paying dividend is given, then what will be the changes?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?
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