Question dividends on income statement

[Making it 3for3]

I don't remember much accounting. I have a question. If company A owns 80% of Company T, and both companies pay out $2 million in dividends, how much $ value in for distribution of dividends will the consolidated financial statement show?

Is it simply $4 MM, because the dividend income that Company A receives from their position in Company T is listed in a different line on the income statement?

I don't think you'd net it out to get $2.4 MM b/c like I said above, the have to write down dividends payable and then income from investments is a separate item.

Is the answer different depending based on US vs. UK rules?

 

[JeffJ21]

dont they have to file consolidated statements at 80% ownership?

 

[Making it 3for3]

Yes, but they are still separate entities so I believe that if company T pays $2MM even though 80% of it goes to company A, all of what they both pay out is listed on the income statement.

 

[sydneybound]

minority interest accounting:

0-20% - cost or mkt value (whichever is less) carried on balance sheet
20-49% - equity method, the share of the minority interest's earnings on income statement
50%+ - consolidation, carry all of minority interest's revenues, expenses, tax liabs and profits on income statment, but then a one line entry that deducts the % that they don't own.