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Hi sir, i understand that the dividend income from associate or subsidiary cannot be shown in the consolidated financial statements. Therefore it has to be cancelled.
But do we cancel the entire dividend from investment income or do we cancel the P% of dividend income and A% of dividend income.
I’m confused because in my complete textbook they minus P% of dividend income from invesment income but one of the exam questions that i have tried , shows otherwise. Could you explain sir?
Only the P share of the S dividend and the P share of the A dividend is included within the parent’s statement of profit or loss so it’s only those P shares of dividends that we cancel
The remainder un-cancelled amounts are paid to the nci (in the subsidiary) and the majority holders (in the associate)
I’d be interested to read the question and answer where the text book has deducted 100% of the S dividend
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