CAF-6 · Chapter 9 · Question 7 of 15
When eliminating intra-group dividends, which of the following is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Both investment income in the parent and the dividend paid by the subsidiary are eliminated.
Explanation
Dividends paid by the subsidiary to the parent are purely internal and must be cancelled out so they don't appear in the consolidated financials.
More Consolidation (IFRS 10, IFRS 3) MCQs
- Q9IFRS 3 allows NCI at the date of acquisition to be measured at either Fair Value (Full Goodwill) or:
- Q10At the reporting date, NCI in the Statement of Financial Position is calculated as:
- Q11How are 'Intra-group balances' (like a loan from parent to subsidiary) treated on consolidation?
- Q12Consolidated Retained Earnings include 100% of the Parent's retained earnings plus:
- Q13Which of the following is NOT an 'Identifiable' asset for IFRS 3 purposes?