I understand part of the answer although I am not sure why they don’t also add the share of investee’s net income for the year for Alton, Barker and Cosmic. Perhaps this is a wording confusion on my part because I still think that you should add the dividends as well as the net income per investment. Any thoughts?
Contribution of the equity portfolio for financial assets comes from dividends and change in fair value. Alteron = -3 + 1 => -2 Baker = +2 (u dont include change in value because it’s in the OCI) Cosmic = 3 However Darnell is associated company = investment in associate Effect of investment in associate on NI comes from NI portion only. Dividends do not affect NI however they affect the total investment in associate account. So Darnell = 15 -2 + 2 + 3 + 15 = 18 the only time you include the effect on dividend on investment in associate is when they ask for the account balance or equity balance then you get the initial cost + share of net income - share of dividend. I hope i answered your question.