Presentation Topic AYB 340 – Consolidation NCI
Friday 11 May 2018
Following consolidation, should dividends paid by the parent entity and to the parent entity by its subsidiary be shown in the consolidated financial statements?
Using the following example, explain the journal entries line by line to the class that would be required in preparing the consolidated financial statements for 30 June 2017.
Opperman Ltd owns all the share capital of Jewel Ltd. The income tax rate is 30%. During the year ended 30 June 2017, Opperman Ltd paid a dividend of $20 000, and Jewel Ltd paid and declared dividends of $10 000 and $30 000 respectively.