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

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.