Treatment of dividend credited in P&L account by holding company while consolidation of P&L

I came across with illustration 12 in consolidation of financial statements in institute study material, in that statement saying dividend has been paid by subsidiary company (post acquisition period profit) and holding company credit that in p&l . But in answer the dividend is not reduced in income portion. Also in nov23 rtp (question 11)the same sum was asked in that they reduced dividend portion in income. I also refered December 2021 suggested answer, question 3a, there also dividend not reduced. My contention it has to be reduced, because we will add it in profit and loss under reserves and surplus. Right or wrong?

Praveenkumar M

CA Final

★ 8K+

09-Nov-23 12:30

510