Interim dividend treatment in consolidation
nidhi (miraroad) (58 Points)
23 March 2020
what is interim dividend treatment in consolidation calculation please tell
1 Replies
Arijit Chakraborty
(17 Points)
Replied 28 March 2020
I understand here the question is about interim dividend paid to the holding co by its subsidiary.
In the consolidated books, the following entry will be passed:
Finance Income..........Dr.
To, Retained Earnings
(amount of dividend paid by the subsidiary company to its parent entity)
Current Tax.................Dr.
To, Retained Earnings
(Amount of DDT shown in subsidiary's RE on payment of dividend to the Holding Co.)
Note: Assumed that both the holding and subsidiary company have prepared their books as per provisions of Ind AS.
In the consolidated books, the following entry will be passed:
Finance Income..........Dr.
To, Retained Earnings
(amount of dividend paid by the subsidiary company to its parent entity)
Current Tax.................Dr.
To, Retained Earnings
(Amount of DDT shown in subsidiary's RE on payment of dividend to the Holding Co.)
Note: Assumed that both the holding and subsidiary company have prepared their books as per provisions of Ind AS.
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