Where dividends are paid/declared by an associate or joint venture and the entity receiving the dividend prepares consolidated financial statements, the dividend revenue recognized in the entity's accounts is eliminated on consolidation.

Question

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When dividends are paid/declared by an associate or joint venture and the entity receiving the dividend prepares consolidated financial statements, the dividend revenue recognized in the entity's accounts is eliminated on consolidation. This is done to avoid double counting of the dividend revenue in the consolidated financial statements.

Where Dividends Are Paid/declared by an Associate or Joint Venture