In the presence of non-controlling interests, if dividends are declared by a subsidiary and by a...

In the presence of non-controlling interests, if dividends are declared by a subsidiary and by a parent entity, which dividends payable will be shown in the consolidated balance sheet?

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Solution:

In the presence of non controlling interest, dividend payable by Parent Company will be shown in consolidated balance sheet.

Dividends paid by the subsidiary company to the parent company are excluded while preparing consolidated income statement on consolidation. Also, Dividends paid by the subsidiary to non-controlling shareholders is shown as a deduction in the consolidated income statement non-controlling interest income

ekkarill92 answered 2 years ago

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