Which statement is true in respect of the treatment of equity dividend proposed by the subsidiary company during the current year ?

CS Executive · Corporate and Management Accounting · PYQS · June 2023
Which statement is true in respect of the treatment of equity dividend proposed by the subsidiary company during the current year ?
(A) It will be simply ignored for the consolidation. It will not be mentioned even in the notes to accounts to the balance sheet of the subsidiary
(B) Such proposed dividend is simply shown in the notes to accounts to the Balance Sheet related to the year of the proposal
(C) The entry will be passed if the same has not already been passed
(D) Add the proposed dividend amount with the existing dividend

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Corporate Accounting

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