When a Subsidiary Company That Has a Non-Controlling Interest (NCI)declares

question 41

Multiple Choice

When a subsidiary company that has a non-controlling interest (NCI) declares a dividend,the treatment in the consolidated statement of financial position of dividends not paid is:

• A) The non-controlling interest portion of the dividend owing should be eliminated along with the parent entity's share, leaving a zero balance in dividends payable.
• B) The NCI's portion should be deducted from the non-controlling interest's share in equity. There should be no dividend amounts remaining in the consolidated statement of financial position, but the amount owed to the NCI should be disclosed separately.
• C) The amount owing to NCI as a dividend payable should be included in the consolidated statement of financial position as a current liability.
• D) The amount of dividends payable to both the parent entity and the NCI will be reflected in the consolidated statement of financial position.