If a dividend is declared and paid by a subsidiary in the current period after its acquisition by the parent, from the outlook of the group:

Question

Quizplus · Accepted Answer

When a subsidiary declares and pays a dividend after its acquisition by the parent, from the group's perspective, no dividend has been paid because the transaction is considered internal. The payment simply transfers funds from one part of the group to another without affecting the consolidated financial position.

If a Dividend Is Declared and Paid by a Subsidiary