When calculating the contribution to net earnings from investment in associates, aren’t we supposed to remove our portion of dividends? The answer doesn’t remove the portion of dividends after removing the depreciation of excess paid. If anyone remember this question, any explanation would be appreciated!
Dividends are only adjusted for in the balance sheet, as a deduction from our investment in company X. They are not accounted for in the Income Statement.
Never include dividends in ANY Income statement questions. Only for calculating the BS value.
*Note the above refers to equity method. Dividends WOULD be included in AFS and FVPL <20% instruments.
Feel stupid now haha thanks guys!