Viagem

Dear Tutor,

So the revision kit gives an Investment income line under Parent 500,000

(v) Parent’s investment income is a dividend received from investment in a 40% owned Associate. The underlying earnings for associate for the year end were 2,000,000

but in answer It shows only 800,000.I understand that we only include the share of the parent for the associate profits.

It could be 500,000+800,000 , why not?

Source (revision bpp ques 309 (Viagem)

Also if the example stated that the investment income (500.000,00) was from the subsidiary in this example Greca that we owned 90% how would the income received would have been calculated?

Or if you could guide to some examples on how to calculate investment income from subsidiaries.

Thank you very much.

?hank you.