When a partly owned subsidiary receives a dividend from an entity that they have an interest in, an adjustment must be made to the current year profit prior to calculation of the direct NCI share of profit.

Question

Quizplus · Accepted Answer

This adjustment is necessary to remove the impact of the dividend on the subsidiary's profit and ensure that the direct NCI share of profit is calculated correctly.

When a Partly Owned Subsidiary Receives a Dividend from an Entity