Re: Associate Companies and Joint Venture Pg 16

Hi Mike,

For Statement of Profit and Loss and Other Comprehensive Income, we will ignore any intra-group dividends even though the respective parent co, subsidiary, associate or joint venture declare dividends? We will only take into account the dividends declared in the retained earnings working ?

Assume using example 1 (pg 16), if the joint venture Saulius declared dividends of says $3,000 (for eg instead of $4000) and based on the percentage (25%), dividends should only be $750. Assume that on the P/L it states dividends received is $1,000. Does it mean that the company had received other investment income of $250? If that’s the case, it will be written on a separate line stating “other investment income : $250”?

Thanks!
Regards,
Joanna.