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Will dividend paid to nci and associates reduce their values by the holding company?
No, and two things spring to mind.
1) re dividends paid to associates! WHAT? and dividend is surely going to be coming FROM an associate!
2) re dividends paid to nci – in calculating nci for the Balance Sheet, we take:
“their value at date of acquisition + their share of post-acq retained in S – their share of any goodwill impairment”
Now where, in that mantra, do you see anything about dividends?
For the nci share of this year’s results, we take:
“their share of this year’s subsidiary, adjusted, time-apportioned , profit after tax”
Now where, in that mantra, do you see anything about dividends?
Just follow the rules! I’m a man that doesn’t waste words and EVERY word in those two mantras carries its own weight. They are, each and every one of them, important
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