The indirect NCI share of contributed equity is not affected by the payment of a dividend by a subsidiary.

Question

Quizplus · Accepted Answer

The indirect NCI share of contributed equity represents the portion of net assets that belong to the non-controlling shareholders. Payment of dividends by a subsidiary affects the retained earnings, which in turn affects the book value of the net assets. However, the indirect NCI share of contributed equity is not affected by the dividend because it represents the contributed capital of the non-controlling shareholders and not the earnings or dividends they are entitled to receive.

The Indirect NCI Share of Contributed Equity Is Not Affected