Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Elimnination of Investment Income/Expense

I have requirement to eliminiate intercompany investment against expenses.

Company X has investment in company Y for 90% of stocks.

Company Y distributes dividend income ( $1000)and Company X share is 90%($900)

Company X accounts for investment income , but pays a tax of 30%. Hence accounts for investment income as $630, tax is $270.

How will this work in elimination where X will report income of $630 and Y will report the amount to be eliminated as $900.

Helpful Answer

Not what you were looking for? View more on this topic or Ask a question