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Under Ind AS 27, dividends from a subsidiary, associate or JV in separate FS are recognised in P&L:
AWhen the dividend is declared by the board
BWhen the dividend is actually received in the bank
CWhen the dividend cheque is mailed
DWhen the entity's right to receive the dividend is established (typically AGM approval)
Answer & Solution
Correct answer: D. When the entity's right to receive the dividend is established (typically AGM approval)
Paragraph 12: dividend income is recognised when the entity's RIGHT to receive payment is established, which is typically the date shareholders approve the dividend in the general meeting (or the record date as applicable).
Related questions
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