Came across a bunch of questions, looking to make the distinction clear… B/S = Balance Sheet, I/S = Income Statement, CFS = Cash Flow Statement, Div = Dividends Equity method: B/S impact: Dividends received reduce your Equity Investment Account Dividends received increase your Cash Account I/S impact: No effect on I/S (it is a line item BELOW Net Income) CFS impact: Increases CFO (GAAP or IFRS) or CFI (only IFRS) Acquisition method: B/S impact: Dividends received — ??? Dividends received increase your Cash Account I/S impact: No effect on I/S (but where does it show up?) CFS impact: Increases CFO (GAAP or IFRS) or CFI (only IFRS) Proportionate Consolidation method: I imagine would be the same as Acquisition method… Thots?
Buff… I wouldnt approach it that way… Break it down as follow: No influence: HFT - only p&l HTM - N/A AFS - p&l Influence: - yes it increases you cash, but for Reporting assume it is already there in your cash balance - decreases you investment balance Control: - no impact on p&l Now for cf it always goes through CFI
tiredofstudying: One correction from your post: For acquisition method, There is no such thing called “Dividends received”. The acquirer does not receive dividends from the acquiree because acquiree is a subsidiary. Am I right? Dividends are paid from the acquirer and part of these dividends go to Minority interest shareholders. Cash goes down when dividends are paid.