When a Subsidiary Declares a Final Dividend Payable to a Parent

Multiple Choice

When a subsidiary declares a final dividend payable to a parent who has a 100% interest in the subsidiary the parent recognises a dividend receivable and the subsidiary recognises a dividend payable. In addition to the elimination of these two items on consolidation, the following items must also be eliminated:

A) Dividend declared and Retained earnings
B) Dividend declared and Dividend revenue
C) Dividend revenue and Cash
D) Dividend declared and Cash.