treament of dividends in consolidated financial position and cons income statement

Essentially, cancel any intra-group dividends paid and received. If a dividend from a subsidiary is being paid part out of the subsidiary’s pre-acquisition profits, then the pre-acquisition element should be deducted from the cost of acquisition paid by the parent.

In the I/S, the parent should be showing investment income. Some of that investment income will be dividend from the subsidiary. The amount from subsid should be excluded when showing consolidated investment income.

the parent’s own dividend should be a appropriation in the SofCIE as should also be the dividend paid / payable to the nci