Dividends paid by a subsidiary have the following affect on the consolidated cash flow

Question

Quizplus · Accepted Answer

Dividends paid by the subsidiary to the controlling interest are a transfer of cash within the consolidated entity and would not appear on the consolidated statement of cash flows, however, dividends to the NCI are cash flows to parties outside the consolidated group and would be included as a financing activity on the consolidated statement of cash flows.

Dividends Paid by a Subsidiary Have the Following Affect on the Consolidated