I know it may be a silly question right now.
In the equity method, why do not we subtract the dividends obtained from the share of net income recorded on the books of the acquirer?
Divides is a return of excess.
In accounting, it just means you are getting your money back!
In essence, you do: you add your share of net income to the investment and subtract your share of the dividends. That’s the same as adding your share of income minus dividends.
Dividend is a cash asset. When you receive dividends from a sub, your cash under assets go up. So you deduct investment in associates by the same amount to prevent double-counting.