- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
-
Posts
-
Mike, its me again sorry for keep opening new thread
because in working W3 (and also part of working W5) the group’s share of the associate is computed as:
Group share of
this year’s
associate
adjusted
time apportioned
profit after taxand that figure (profit after tax) is the amount from which the associate will then finance their dividend
So by taking the share of profit after tax, the calculation takes in the share of retained earnings AND the share of the dividend paid by the associate
Profit after tax –
(Dividend) =
Retained earningsImmediately BEFORE the sub-total “profit before taxation” there is the line:
“Group’s share of Associate’s profit AFTER taxation”
For the part u mention above,
is that means the income from associate,
we need to use (profit after tax -dividend paid by associate) xassociate%= xxx and then – impairment of goodwill?
Thanks you so muchNo
We use what I have written:
Group share of
this year’s
associate
adjusted
time apportioned
profit after taxThe dividend income is ignored in any cross-addition of investment income
Impairment is an impairment of the investment – it is NOT an impairment of goodwill because we don’t have goodwill on the acquisition of an associate – we have a premium on acquisition
- The topic ‘dividend received’ is closed to new replies.