On the BS, a non-current asset account names investment is created wich equals the initial investment. Normally, cash is reduced by the same amount. Then, subsequent investee's earning increase the investment account, dividends received from the investee reduce the investment account. To balance, retained earnings should be added.
Dividends received from the investee are not recognized in the income statement.
I don't know if my understanding is right. |
发表于 2011-7-11 19:41
|