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Q: Why is a Dividend paid from subsidiary to parent?
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What is an ultimate parent company?

An ultimate parent company considered as a parent company of a subsidiary entity, and the subsidiary entity has its subsidiary entity.


What is equity earnings?

Also called indirect, unreported, or undisclosed earnings, that part of the surplus earnings of a subsidiary company, over and above dividend payments, not reported by the parent company. Most of the large corporations hold or control through full, majority, joint (half, third, quarter, etc.) or minority stock ownership in subsidiary is or affiliated companies. Unless the ownership of such subsidiary is a majority interest, the parent company cannot under proper accounting principles consolidate the earnings of a subsidiary or subsidiaries in the income account of the parent company, but only such part of such earnings as may be actually paid to the parent organization as dividends. When earnings of subsidiaries are consolidated in the income account of the parent organization, the proportion of earnings applicable to the minority interest must be deducted.


What is the difference between dividend proposed and dividend paid?

A company proposes a dividend to be paid to shareholders. The shareholders vote on this and the dividend that is actually paid may differ from that proposed.


What is Differential between upstream and downstream inter-company transaction?

downstream from parent to subsidiary upstream from subsidiary to parent


What does a shareholder qet when a dividend is paid?

A shareholder gets a portion of the companies profits when a dividend is paid.


What is Dividend Cover?

Dividend Cover is actually the inverse of the Dividend Payout Ratio. It is calculated by comparing the Earnings Per Share (EPS) and the actual dividend paid out per share.Formula:DC = EPS / Dividend Paid


When smaller companies are owned and controlled by larger parent company they are what of what parent company?

They are "a subsidiary."They're called subsidiary companies.


How do you record the merger of a subsidiary into its parent when the investment in the subsidiary exceeds the book value of the subsidiary?

Unfortunately you have to record it as a loss to the parent company. Or it will at least show as a loss on the financial statements.


What is difference between final and proposed dividend?

Proposed dividend refers to the amount expected to be paid to shareholders. Final dividend is the official dividend paid to shareholders at the end of a financial year.


How is retained earnings calculated?

1. If dividend paid: Retained Earnings = Net profit - dividend if dividend not paid: Retained earnings = Net profit


Which term refers to the money paid to corporate investors in return for their investment?

dividend....


What is the difference between proposed and declared dividend?

Proposed dividend is that which is proposed by the management to be paid to share holders of company.Declared dividend is the dividend which is finalized in annual general meeting to be paid to share holders.