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dvd income, consolidation method...

When dividends are received from an investment held under the consolidation method how are they reflected in the income stmt, is there any special treatment? Had a question that stated only proportionate share of net inc would effect incremental net inc of investor, although co did pay out dvd's in the period.



Edited 1 time(s). Last edit at Thursday, June 2, 2011 at 11:09PM by jgrandits.

Consolidation - you report everything on I/S and just put the % you don't own in minority interest

so I assume all of the dividends are reported on income statement

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They're not reflected in the Consolidated Income Statement.

Your consolidated income statement will show 100% combined revenues & expenses. You then create a Minority Interest line for the portion NOT owned by you x investment's net income.

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