When dividends are received from an investment held under the consolidation method how are they reflected in the income stmt, is there any special treatment? Had a question that stated only proportionate share of net inc would effect incremental net inc of investor, although co did pay out dvd’s in the period.
Consolidation - you report everything on I/S and just put the % you don’t own in minority interest so I assume all of the dividends are reported on income statement
They’re not reflected in the Consolidated Income Statement. Your consolidated income statement will show 100% combined revenues & expenses. You then create a Minority Interest line for the portion NOT owned by you x investment’s net income.