Only dividends payable to the parent entity are eliminated against dividends receivable in the accounts of the parent entity.

Question

Quizplus · Accepted Answer

Dividends payable and receivable between a parent entity and its subsidiaries are eliminated in consolidated financial statements to prevent double-counting. However, only dividends payable to the parent entity are eliminated against dividends receivable in the accounts of the parent entity. Dividends payable and receivable within the subsidiaries are eliminated separately.

Only Dividends Payable to the Parent Entity Are Eliminated Against