After eliminating the dividend payable to the parent,the balance of the dividend payable to the minority interest:
A) will be eliminated as well.
B) will be included within the consolidated financial statements.
C) will be added recognised as an expense in the consolidated financial statements.
D) will be transferred into a minority interest reserve account.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The dividend payable to the minority interest will still be included within the consolidated financial statements even after the dividend payable to the parent has been eliminated. This is because the dividend payable to the minority interest represents their proportional ownership in the subsidiary, and is thus relevant to the consolidated financial statements.

After Eliminating the Dividend Payable to the Parent,the Balance of the Dividend