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Can you please explain the accounting treatment of dividends received from subsidiaries by a parent in which another subsidiary of the same parent has also acquired its interest. For instance, P (parent) has two subsidiaries Q & R. P owns 90% of Q and 60% of R, but Q also owns 30% of R. If R declares a dividend of 10,000, how to account for it?
See the course notes example Anda, kristina and Liene
The second example which says “Now, using the same information, prepare the CSoFP assuming that dividends have been proposed by the three companies of ( I can’t remember the amounts, but say, ) 30,000, 18,000 and 10,000 respectively”
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