Which of the following statements is incorrect with regards to non-controlling interests in subsidiaries?
A) The requirement to eliminate the effects of intragroup transactions holds whether or not there are non-controlling interests.
B) The non-controlling interest's share in the dividends paid or proposed by the subsidiary is eliminated on consolidation.
C) The non-controlling interest's share of the profits of the subsidiary is calculated after adjustments to eliminate income and expenses of the subsidiary that are unrealised from the economic entity's perspective.
D) Management fees paid in an intragroup transaction are considered realised when determining non-controlling interests in a subsidiary.

Question

Quizplus · Accepted Answer

The non-controlling interest's share in the dividends paid or proposed by the subsidiary is not eliminated on consolidation. Dividends paid to non-controlling interests are a distribution of profits to those shareholders and do not get eliminated in the consolidation process.

Which of the Following Statements Is Incorrect with Regards to Non-Controlling