dvd income, consolidation method... investor, although, dvd, investment, net

LorrinCFA

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.

needhelp1700

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

eoin

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.