When a Corporation Owns Less Than 20% of the Stock

question 88

True/False

When a corporation owns less than 20% of the stock of another company, dividends received are not treated as income.

---

Definitions:

Consolidated Information

Financial information that combines the accounting records of a parent company and its subsidiaries into one set of financial statements, as if they were a single entity.

Separate Financial Statements

Statements presented by a parent or an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost in accordance with AASB 9 / IFRS 9.

Repurchased Shares

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.