How do I treat the dividends received from a minority interest under the acquisition method? The dividend would likely be reflected (prior to combining the P&L's) in the parent income statement. Is this received amount removed from the parents earnings before consolidation? What part of the minority dividend is reflected in its minority interest balance sheet account?

Minority interest is reported under the equity section of the consolidated balance sheet under the acquisition method. I'm not sure what you mean by "received amount removed from the parents earnings before consolidation" - why would it?

A CFA Level 2 Discussion About Treatment Of Dividends Received From Minority Interests Under The Acquisition Method

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This topic has 1 reply, 2 voices, and was last updated Aug-177:41 am by fabian.

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- deon
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  22 Aug 2017 at 8:50 pm
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  How do I treat the dividends received from a minority interest under the acquisition method? The dividend would likely be reflected (prior to combining the P&L’s) in the parent income statement. Is this received amount removed from the parents earnings before consolidation? What part of the minority dividend is reflected in its minority interest balance sheet account?
- fabian
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  23 Aug 2017 at 7:41 am
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  Minority interest is reported under the equity section of the consolidated balance sheet under the acquisition method. I’m not sure what you mean by “received amount removed from the parents earnings before consolidation” – why would it?
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