Dividends payable by a subsidiary on an ex-dividend basis will be ignored for the purposes of consolidation.

Name: Dividends payable by a subsidiary on an ex-dividend basis will be ignored for the purposes of consolidation.
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Question

Quizplus · Accepted Answer

This is true because dividends paid on an ex-dividend basis means that the buyer of the stock will not receive the dividend payment. Therefore, including it in the consolidation would not accurately reflect the total dividends paid by the subsidiary.

Dividends Payable by a Subsidiary on an Ex-Dividend Basis Will