How to handle interest in intercorporate investments net, interest, problems, before, equity

mar350

I’m aware how to handle NI and dividends for both passive investments and the equity method.
What about interest? Page 118 Book 2 shows that interest goes on the I/S for H2M, AFS, and Trading. So if interest paid was 1M, do you just add 1M to the parent’s net income?
What about in equity method?
I haven’t seen interest before in any intercorporate problems..