In its individual accounts, the parent Okapi Co recognised investment income of $410,000: dividends of $300,000 from a subsidiary, $90,000 from an associate and $20,000 from other equity investments. What investment income should appear in the consolidated statement of profit or loss?

Correct answer: C) $20,000

Explanation

Dividends from a subsidiary are intra-group and are cancelled on consolidation. Dividends from an associate are replaced by the group's share of the associate's profit, shown separately, so including them would double count. Only the $20,000 from other investments stays as investment income.