Dividend Received from Subsidiary

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June 10, 2019 at 9:48 am #520079
syeduzairnaqvi
Participant
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I want to ask the treatment of dividend received from subsidiary in consolidated income statement which was recently examined…I proposed the following entry…Is it correct?

Dr. Retained Earning 2.8 (70%)
Dr. NCI 1.2 (30%)
Cr. Investment Income 4 Mn
June 12, 2019 at 1:38 pm #520310
P2-D2
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Hi,

The dividend received from the subsidiary is not included within the group accounts. The dividend will have been recorded within the parent’s individual accounts, and this is eliminated and replaced with the revenue and costs of S on a line by line basis.

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