Where a partly owned subsidiary has a dividend declared but not yet paid at balance date, the NCI share of equity is reduced by the NCI share of the dividend and the dividend payable to the NCI is eliminated.

Question

Quizplus · Accepted Answer

The NCI share of equity is not reduced by the NCI share of the dividend until the dividend is actually paid. Instead, the dividend payable to the NCI is recognized as a liability in the consolidated financial statements until it is paid.

Where a Partly Owned Subsidiary Has a Dividend Declared but Not