I have been thinking about this for a couple of minutes and i thought others might be interested in chiming in their thoughts.
So if you have company A with 40% stake in company B what portion of company B’s cashflow does company A record in its statement of cashflows? Would this be the dividends recived only and the proportion of income generated by company B is ignored? Also, how is this accounted for as a free cash flow? Can company A record a proportion of companty B’s cash flow in its free cash flow?