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Dividend to NCI

ASalawi sayed1mo ago
Hello About chapter 7 Thanks for the great lectures, Here to the NCI should we get dividends from NCI or we have to pay NCI dividends .The sub must distribute dividends to shareholders and the parent is the main shareholder.Do we have to pay the Sub ort the sub has to pay the parent. Please clarify this confusion. Thanks
stephenwidbergstephenwidbergTutor1mo ago#1
Group = P plus S Group CF shows money coming in and out to / from P plus S CF between P and S don't count With NCI the relevant cash is money paid OUTSIDE THE GROUP to NCI by S - this is the NCI share of S's dividend paid It's a cash outflow :)
ASalawi sayed1mo ago#2
Hello Sir, Got it Thanks. So when we talk about the NCI we never mean the subsidiary. So S is different from NCI as much as the parent is concern. Group pay the NCI for its share of S'dividends. But we shouldn't count the the payement from S to the parent of the dividends that will not be shown in the fianancial statements? Am I right ? Thanks.
stephenwidbergstephenwidbergTutor1mo ago#3
100% correct :)
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